The records for Ivanhoe Co. show this data for 2021: Gross profit on installment sales recorded on the books was $350,000. Gross profit from collections of installment receivables was $210,000. Life insurance on officers was $3,100. Machinery was acquired in January for $230,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Ivanhoe may deduct 14% for 2021. Interest received on tax exempt Iowa State bonds was $8,300. The estimated warranty liability related to 2021 sales was $20,900. Repair costs under warranties during 2021 were $12,900. The remainder will be incurred in 2022. Pretax financial income is $530,000. The tax rate is 20%.