The records for Able Company show this data for 2014:

	Life insurance premiums for officers was $5,000 and included on the income statement.
	For tax purposes, MACRS depreciation is used and is $42,000. For F/S purposes, uses straight-line depreciation and it amounted to $30,000.
	Interest received on tax exempt bonds was $4,000.
	Bad debts on the income statement were estimated at 3% of sales and amounted to $20,000. The actual amount of accounts that were deemed uncollectible during the year were $28,000.
	Pretax financial income is $650,000. The tax rate is 30%.

Instructions

Prepare a schedule starting with pretax financial income and compute taxable income.