The accounting records of Martinez Inc. show the following data for 2020 (its first year of operations). 1. Life insurance expense on officers was $7,000. 2. Equipment was acquired in early January for $453,000. Straight-line depreciation over a 6-year life is used, with no salvage value. For tax purposes, Martinez used a 30% rate to calculate depreciation. 3. Interest revenue on municipal bonds totaled $3,400. 4. 5. Product warranties were estimated to be $93,000 in 2020. Actual repair and labor costs related to the warranties in 2020 were $23,000. The remainder is estimated to be paid evenly in 2021 and 2022. Sales on an accrual basis were $499,000. For tax purposes, $402,000 was recorded on the installment-sales method. 6. Fines incurred for securities violations were $10,100. 7. Pretax financial income was $475,000. The tax rate is 30%.