Reference no: EM13854484

The following information is available for Remmers Corporation for 2014.

1. Depreciation repotted on the tax return exceeded depreciation reported on the income statement by $131,600. This difference will reverse in equal amounts of $32,900 over the years 2015-2018.

2. Interest received on municipal bonds was $13,000.

3. Rent collected in advance on January 1, 2014, totaled $68,400 for a 3-year period. Of this amount, $45,600 was reported as unearned at December 31, 2014, for book purposes.

4. The tax rates are 40% for 2014 and 35% for 2015 and subsequent years.

5. Income taxes of $325,000 are due per the tax return for 2014.

6. No deferred taxes existed at the beginning of 2014.

Required:

What is the taxable income for 2014?

What is the pretax financial income for 2014?