The records for Crane Co. show this data for 2021:

		Gross profit on installment sales recorded on the books was $ 440,000. Gross profit from collections of installment receivables was $ 300,000.
		Life insurance on officers was $ 4,000.
		Machinery was acquired in January for $ 320,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Crane may deduct 14% for 2021.
		Interest received on tax exempt Iowa State bonds was $ 9,200.
		The estimated warranty liability related to 2021 sales was $ 21,800. Repair costs under warranties during 2021 were $ 13,800. The remainder will be incurred in 2022.
		Pretax financial income is $ 620,000. 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).)

estion 15 of 23 Schedule of Pretax Financial Income and Taxable income for 2021 $ V