The records for Bosch Co. show this data for 2018: Gross profit on installment sales recorded on the books was $360,000. Gross profit from collections of installment receivables was $220,000 Life insurance on officers was $3,200 Machinery was acquired in January for $240,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Bosch may deduct 14% for 2018 Interest received on tax exempt Iowa State bonds was $8,400 . The estimated warranty liability related to 2018 sales was $21,000. Repair costs under warranties during 2018 were $13,000. The remainder will be incurred in 2019 Pretax financial income is $540,000. The tax rate is 30%