1. Infinity Production acquired a new machine at the beginning of the current year. The machine cost $900,000 with no residual value expected. Infinity uses the straight-line method for financial reporting, assuming a 6-year useful life. The firm classifies the equipment as 5-year MACRS property for tax purposes using the following percentages MACRS(96) 20.00% 32.00 19.20 11.52 11.52 5.76 Year 4 The company is subject to a 40% income tax rate and has no other book-tax differences. Income before depreciation and tax is presented below: Income before Tax and Depreciation $400,000 450,000 520,000 700,000 820,000 950,000 Year 3 6 What is Infinity's taxable income for year 1? $220,000 C $245,000 $400,000 $250,000