The accounting records of Vaughn Inc. show the following data for 2020 (its first year of operations). 1. 2. 3. 4. Life insurance expense on officers was $9,300. Equipment was acquired in early January for $277,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Vaughn used a 30% rate to calculate depreciation. Interest revenue on State of New York bonds totaled $4,300. Product warranties were estimated to be $48,500 in 2020. Actual repair and labor costs related to the warranties in 2020 were $9,000. The remainder is estimated to be paid evenly in 2021 and 2022. Gross profit on an accrual basis was $103,000. For tax purposes, $69,100 was recorded on the installment-sales method. Fines incurred for pollution violations were $4,500. Pretax financial income was $793,300. The tax rate is 30%. 5. 6. 7. Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020. Schedule of Pretax Financial Income and Taxable Income for 2020 Pretax financial income $ Permanent differences Temporary differences