The records for Blossom Co show this data for 2025:
Gross profit on installment sales recorded on the books was $430,000.
Gross profit from collections of installment receivables was $290.000
Life insurance on officers was $3.900.
Machinery was acquired in January for $310.000.
Straight-line depreciation over a ten-year life (no salvage value) is used.
For tax purposes, MACR5 depreciation is used and Blossom may deduct 14% for 2025.
Interest received on tax exempt lowa State bonds was 59.100.
The estimated warranty liability related to 2025 sales was $21,700. Repair costs under warranties during 2025 were $13,700. The remainder will be incurred in 2026.
Pretax financial income is 5610.000. 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))