The accounting records of Novak 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 $471,000. Straight-line depreciation over a 6-year life is used, with no salvage value. For tax purposes, Novak used a 30% rate to calculate depreciation. 3. Interest revenue on municipal bonds totaled $3,500. 4. Product warranties were estimated to be $87,000 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. 5. Sales on an accrual basis were $517,000. For tax purposes, $410,000 was recorded on the installment-sales method. 6. Fines incurred for securities violations were $10,900. 7. Pretax financial income was $472,000. The tax rate is 30%. (a) Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)