Year 2 - Assignment Two 2025: Make sure you have reviewed the video and understand 2024 before finalizing 2025. 1. During 2025, C\&C collected $112,000 from customers for the receivables arising from contracts completed in 2024. The company expects recovery of the remaining receivables to result in taxable amounts of $112,000 in each of the following three years. 2. In 2025, the company completed four new contracts that allow for the customer to pay on an installment basis. These installment sales created new installment receivables. Future collections of these receivables will result in reporting gross profit of $64,000 for tax purposes in each of the next four years. 3. During 2025, C\&C continued to depreciate the assets acquired in 2024 according to the depreciation schedules shown above (in Assignment 1 - 2024 information). Thus, depreciation amounted to $90,000 for financial reporting purposes and $172,800 for tax purposes. 4. An analysis at the end of 2024 , of the product warranty liability account, showed the following details. The balance of the liability is expected to require expenditures in the future as follows. 5. During 2025, nontaxable municipal bond interest revenue was $24,000. 6. C&C accrued a loss of $172,000 for financial reporting purposes because of pending litigation. This amount is not tax-deductible until the period the loss is realized, which the company estimates to be 2029. 7. Pretax financial income for 2025 amounts to $504,800. 8. The enacted tax rates still in effect are: a. 2024=50% b. 2025& later years =40%