14. Ludlew, a calendar-year, accrual basis corporation, reported $8,354,000 net income be- fore tax on its audited financial statements. Its records reveal the following information Book depreciation expense was $793,000, and MACRS depreciation was $707,000. Ludlew sold equipment for $50,000. Its book basis was $7,800, and its tax basis was zero. Ludlew accrued $2,400 interest expense for the last five months of the year on a short-term note to First Mountain Bank Ludlew recorded $33,200 meals and entertainment expenses Ludlew earned $11,290 interest on City of Philadelphia bonds and $21,000 divi- dends from its 2 percent stock interest TJK, a taxable Delaware corporation a. Compute Ludlew's taxable income. b. Compute Ludlew's federal tax expense per books and federal tax payable. 14. Ludlew, a calendar-year, accrual basis corporation, reported $8,354,000 net income be- fore tax on its audited financial statements. Its records reveal the following information Book depreciation expense was $793,000, and MACRS depreciation was $707,000. Ludlew sold equipment for $50,000. Its book basis was $7,800, and its tax basis was zero. Ludlew accrued $2,400 interest expense for the last five months of the year on a short-term note to First Mountain Bank Ludlew recorded $33,200 meals and entertainment expenses Ludlew earned $11,290 interest on City of Philadelphia bonds and $21,000 divi- dends from its 2 percent stock interest TJK, a taxable Delaware corporation a. Compute Ludlew's taxable income. b. Compute Ludlew's federal tax expense per books and federal tax payable