The records for Pharoah 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 $340,000.
		Life insurance on officers was $4,400.
		Machinery was acquired in January for $360,000. 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 $9,600.
		The estimated warranty liability related to 2021 sales was $22,200. Repair costs under warranties during 2021 were $14,200. The remainder will be incurred in 2022.
		Pretax financial income is $660,000. 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
Estimated Expenses Deductible for Taxes When PaidTemporary DifferencesPretax Financial IncomeTaxable IncomePermanent DifferencesExtra Depreciation Taken for Tax Purposes		$
Taxable IncomeTemporary DifferencesPermanent DifferencesExtra Depreciation Taken for Tax PurposesPretax Financial IncomeEstimated Expenses Deductible for Taxes When Paid
Installment SalesPollution FinesTax-exempt InterestExtra DepreciationLife InsuranceInterest ExpenseWarrantiesRepair and Labor Costs
Extra DepreciationInstallment SalesRepair and Labor CostsTax-exempt InterestWarrantiesInterest ExpensePollution FinesLife Insurance
Pretax Financial IncomeTaxable IncomePermanent DifferencesEstimated Expenses Deductible for Taxes When PaidExtra Depreciation Taken for Tax PurposesTemporary Differences
Tax-exempt InterestRepair and Labor CostsPollution FinesWarrantiesExtra DepreciationLife InsuranceInterest ExpenseInstallment Sales
Pollution FinesExtra DepreciationLife InsuranceWarrantiesInstallment SalesRepair and Labor CostsTax-exempt InterestInterest Expense
WarrantiesPollution FinesExtra DepreciationTax-exempt InterestLife InsuranceRepair and Labor CostsInterest ExpenseInstallment Sales
Pretax Financial IncomeTemporary DifferencesEstimated Expenses Deductible for Taxes When PaidExtra Depreciation Taken for Tax PurposesPermanent DifferencesTaxable Income		$