The accounting records of Shinault Inc. show the following data for 2014 (its first year of operation )

a) Equipment was acquired in early January for $300,000. Straight-line dep over a 5-year life is used, with no salvage value. For tax purposes, Shinault used a 30% rate to calculate dep.

b)Product warranties were estimated to be $50,000 in 2014. Actual repair and labor costs related to the warranties in 2014 were $10,000. the remainder is estimated to be paid evenly in 2015 and 2016.

c)Gross profit on the accrual basis was $100,00. For tax purposes, $75,000 was recorded on the installment-sale method.

d) Fines incurred for pollution violation were $4,200

e) interest revenue on State of New York bonds totaled $4,000

f) pretax financial income was$750,000 The tax rate is 30%

Calculate taxable income and prepare the journal entry for 2014?