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  3. the records for graham co show this data for 2019:

The records for Graham Co show this data for 2019: i. Installment sales of $300,000...

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Accounting

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The records for Graham Co show this data for 2019: i. Installment sales of $300,000 were recognized on the accrual basis for financial statement reporting. Only the $160,000 that was collected during 2019 was recognized for tax purposes. ii. A penalty was paid for unpaid taxes in a previous year in the amount of $1,400. iii. Machinery was acquired in January for $125,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Blake may deduct 14% for 2019. iv. Interest received on tax exempt Kansas state bonds was $3,000. V. The estimated warranty liability related to 2019 sales was $18,000. Repair costs under warranties incurred during 2019 were $11,000. The remainder will be incurred in 2020. vi. Pretax financial income is $275,000. The tax rate is 30%. Required: Prepare a schedule starting with pretax financial income and compute taxable income

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