The records for Carla Vista Co. show this data for 2021:

		Gross profit on installment sales recorded on the books was $510,000. Gross profit from collections of installment receivables was $370,000.
		Life insurance on officers was $4,700.
		Machinery was acquired in January for $390,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Carla Vista may deduct 14% for 2021.
		Interest received on tax exempt Iowa State bonds was $9,900.
		The estimated warranty liability related to 2021 sales was $22,500. Repair costs under warranties during 2021 were $14,500. The remainder will be incurred in 2022.
		Pretax financial income is $690,000. The tax rate is 20%.

(a)

Prepare a schedule starting with pretax financial income and compute taxable income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Schedule of Pretax Financial Income and Taxable Income for 2021
Pretax Financial IncomePermanent DifferencesTemporary DifferencesEstimated Expenses Deductible for Taxes When PaidExtra Depreciation Taken for Tax PurposesTaxable Income		$
Taxable IncomePermanent DifferencesExtra Depreciation Taken for Tax PurposesPretax Financial IncomeEstimated Expenses Deductible for Taxes When PaidTemporary Differences
Life InsuranceInstallment SalesWarrantiesInterest ExpensePollution FinesRepair and Labor CostsExtra DepreciationTax-exempt Interest
Extra DepreciationLife InsuranceRepair and Labor CostsInterest ExpenseWarrantiesTax-exempt InterestInstallment SalesPollution Fines
Temporary DifferencesTaxable IncomePermanent DifferencesPretax Financial IncomeExtra Depreciation Taken for Tax PurposesEstimated Expenses Deductible for Taxes When Paid
Interest ExpenseLife InsuranceExtra DepreciationWarrantiesInstallment SalesTax-exempt InterestRepair and Labor CostsPollution Fines
Interest ExpenseRepair and Labor CostsPollution FinesInstallment SalesExtra DepreciationTax-exempt InterestWarrantiesLife Insurance
Tax-exempt InterestLife InsuranceWarrantiesExtra DepreciationPollution FinesInstallment SalesInterest ExpenseRepair and Labor Costs
Taxable IncomeExtra Depreciation Taken for Tax PurposesTemporary DifferencesPretax Financial IncomePermanent DifferencesEstimated Expenses Deductible for Taxes When Paid		$

(b) Prepare the journal entry to record income taxes for 2021.