15. Geraldo, a calendar-year, accrual basis corporation, reported $951,000 before tax on its 2002 audited financial statements. Its records reveal the following information On February 1, Geraldo purchased a business and capitalized $500,000 of the cost to goodwill Book depreciation expense was $66,100, and MACRS depreciation was $77,800. Geraldo paid an $18.500 premium for its employee group term life insurance plan and a $5,900 premium for its key-person life insurance policies. Geraldo accrued a $35,000 expense for the estimated settlement of a breach-of- contract suit that should go to court next year. a. Compute Geraldo's taxable income. b. Compute Geraldo's federal tax expense per books and federal tax payable, 15. Geraldo, a calendar-year, accrual basis corporation, reported $951,000 before tax on its 2002 audited financial statements. Its records reveal the following information On February 1, Geraldo purchased a business and capitalized $500,000 of the cost to goodwill Book depreciation expense was $66,100, and MACRS depreciation was $77,800. Geraldo paid an $18.500 premium for its employee group term life insurance plan and a $5,900 premium for its key-person life insurance policies. Geraldo accrued a $35,000 expense for the estimated settlement of a breach-of- contract suit that should go to court next year. a. Compute Geraldo's taxable income. b. Compute Geraldo's federal tax expense per books and federal tax payable