The company reported pretax financial income in its income statement of $50,000. Among the items included in the computation of pretax financial income were the following:

Interest revenue from municipal bonds . . . . . . . . . . . . . . . . . . . . . . $10,000

Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000

Warranty expenses (not deductible until actually provided;

none provided this year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

The income tax rate is 30%. Compute the following:

(1) Financial income subject to tax,

(2) Taxable income,

(3) Income tax expense, and

(4) Net income.