Pim industries inc. manufactures electronics components. each unit costs $30 before the final test. the final test rejects, on average, 5% of the 50,000 units manufactured per year. the average rejection rate of the industry is 3%. a consultant has determined that poor lighting is the most likely cause of this high rejection rate. it would cost $100,000 to install adequate lighting in the assembly department, which would be useful for 5 years. with adequate lighting (which will cost an additional $5,000 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average. required 1. should the firm install the lighting? that is, what would be the projected five-year impact on operating profit? (show calculations.) 2. what other considerations might affect this decision? 3. what is the primary role of the management accountant in this decision context?

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."