The accounting records of Shinault Inc. show the following data for Year 12: Equipment was acquired in early January for $300,000. For financial purposes the company uses the straight line method of depreciation over a 5-year life with no salvage value. For tax purposes, Shinault used a 30% rate to calculate depreciation. For financial reporting purposes, product warranties were estimated to be $50,000 in Year 12. Actual repair and labor costs related to Year 12 warranties were $10,000, with the remaining expected to be incurred in Year 13. Fines incurred for pollution violation were $25,000. As of the end of Year 12, the company had recorded, but not yet paid the fines. Pretax financial income for Year 12 was $750,000 and the enacted tax rate is 40% for all years. Taxable income for Year 12 is: