The records for Pharoah Co. show this data for 2021: Gross profit on installment sales recorded on the books was $370,000. Gross profit from collections of installment receivables was $230,000. Life insurance on officers was $3,300. Machinery was acquired in January for $250,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Pharoah may deduct 14% for 2021. Interest received on tax exempt Iowa State bonds was $8,500. The estimated warranty liability related to 2021 sales was $21,100. Repair costs under warranties during 2021 were $13,100. The remainder will be incurred in 2022. Pretax financial income is $550,000. The tax rate is 20%. Prepare a schedule starting with pretax financial income and compute taxable income. Prepare the journal entry to record income taxes for 2021.