The records for Bosch Co. show this data for 2021: . Gross profit on installment sales recorded on the books was $480,000. Gross profit from collections of installment receivables was $320,000. . Life insurance on officers was $3,800. Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Bosch may deduct 14% for 2021. Interest received on tax exempt lowa State bonds was $9,000. The estimated warranty liability related to 2021 sales was $21,600, Repair costs under warranties during 2021 were $13,600. The remainder will be incurred in 2022. ^ Pretax financial income is $700,000. The tax rate is 20%. Instructions (a) Prepare a schedule starting with pretax financial income and compute taxable income. (b) Prepare the journal entry to record income taxes for 2021