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FINANCIAL ACCOUNTING II For the year ended December 31, 2019, The Martin Company's preliminary income...

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FINANCIAL ACCOUNTING II For the year ended December 31, 2019, The Martin Company's preliminary income statement shows $100,000 of earnings before taxes. During 2019, the various tax laws allowed $44,000 of cost-recovery on plant assets (compared to GAAP depreciation of $26,000) and a deduction for warranty payments in cash of $21,000 (compared to the company's warranty cost estimate for the year of $29,000). In addition, law-enforcement agencies have notified the company that a $22,000 cash payment made in 2019 that was recorded by Martin as an "insurance" expense was in fact an illegal payment made to an official in a foreign country. Given the above information, prepare a schedule for the computation of taxable income for 2019. (Use the format provided in the Comprehensive Example in the PowerPoint presentation for Chapter 16 as a guide.)

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