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Reguticed information

The foribwing intormatow appiles to the questions displayed below.

XYZ is ealendar year corporation thet bogan business on January $1,2023.$ For the year, it reported the following information in its current$-$year audited Income statement. Notes with Important tax informalion are provided below Uee

$1xYZ$ owns $30\%$ of the outstanding Hobble Corporation HiC$)$ stock. Habble Corporation reported $$1,000,000$ ot income for the year. $xYZ$ accounted for its imestment in $HC$ ynder the equily method, and it recorded its pro rata share of $HC\text{'}$s earnings for the your. HC also dittributed a $$200,000$ dividend to XYZ$.$ For tax purposos; HC reports the actual dividend recelved as income, not the pro rata share of Hets eanings.

$2.$ Of the $$30,400$ interest income, $$7,600$ was from a City of Seatile bond, $$9,600$ was from a Tacoma City bond, $$8,600$ Was from a fully tasable eorporate bond, and the femaining $$4500$ wat from a money market account.

$3.$ This gain is from equipment that $xY2$ purthased hi Feorudy ahd sold in December $($Re$.,$ it does not qualify as $51231$ gain$)$

$4.$ This includes tolal officer compensation of $$2,500,000($no one officer received more than $$1,000,000$ compensation$).$

$5.$ This amount is the portion or incentive stock opton compensation that was expensed during the year $($reciplents are ifficers$)$

$6.xVZ$ actually wrote of $$33,500$ of its accounts roceivale as uncollectible.

$7.$ Tax depreclation was $$2,225,000.$

B$.$ In the current year, $xYZ$ did not make amy actual payments on warranties it provided to customers.

$9.$ XYZ made $$500,000$ of eash contributions to charities during the year

$10.$ On July $1$ of this yeat, XYZ acquired the assets of another business. In the process, It acquired $$339,000$ of goodwill. At the end of the year, XYZ wrote off $$36,500$ of the goodwill as impaired.

$11$ XZZ exponsed all of its organizational expenditure: for book purposes. XYZ expensed the maximum amount of orgentzatlonel expenditures allowed for tax purposes.

$12.$ The other expenses do not contain any items with book$-$tax differences.

$13.$ This is an estimpted tax provision $($federal tax expense$)$ for the year. Assume that XYZ is not subject to state income takes.

Estinated tax information:

XYZ made four equal entimated tox payments totaling $$440,000($$$110,000$ per quarter$).$ For purposes of estimated tax liabilisies, assume XYZ was in existence in $2022$ and that in $2022$ it reported a tax lablity of $$612,000.$ During $2023,$ XYZ determined its taxable income at the end of each of the first three quarters as follows:

$\backslash$table$[[,$cunulative taxable$],[$Quarter$-$end,incone $($tas$5)],[$First$,$$$465,000$