View Policies Current Attempt in Progress The records for Carla Vista Co show this data for 2021; : Gross profit on installment sales recorded on the books was $400.000. Gross profit from collections of installment . receivables was $260,000. Life insurance on officers was $3,600. Machinery was acquired in January for $280.000. 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 lowa State bonds was $8.800. The estimated warranty liability related to 2021 sales was $21,400. Repair costs under warranties during 2021 were $13.400. The remainder will be incurred in 2022. Pretax financial income is $580,000. The tax rate is 20%. Prepare a schedule starting with pretax financial income and compute taxable income. (Enter negative amounts using either a negative sign preceding the number eg, -45 or parentheses e.g-(45).) Schedule of Pretax Financial Income and Taxable income for 2021 Prelax Financial Income $ 580,000 Prepare the journal entry to record income taxes for 2021. (Credit account titles are automatically indented when amount is entere Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Permanent Differences Debit Account Titles and Explanation Life Insurance Credit 3600 Income Tax Expense Tax-exempt Interest -8800 Deferred Tax Asset Temporary Differences Income Tax Payable Extra Depreciation Deferred Tax Liability Installment Sales Warranties 8000 Taxable income $