2. In 2017, the Cannon Corporation recorded a book income before taxes of $64,800,000. The company's depreciation expense was less than government cost-recovery by $8,000,000. A payment the company made that year for a charitable contribution of $22,000,000 was deductible for tax purposes only to the extent of $7,000,000. Cannon also had a net operating loss carryforward to 2018 of $17,000,000. Cannon had the following transactions and circumstances during 2018: Effective January 2, 2018, Cannon made a 40% investment in the Fuse Technologies Company. Fuse's net income for calendar-year 2018 was $90,000,000. Cannon earned interest of $7,600,000 on tax-exempt bond investments. On May 1, 2018, Cannon sold a building in which It had a carrying value of $66,000,000 for $52,000,000 in cash. On June 30, 2018, Cannon purchased 100% of the capital stock of Shell Electronics Co. for $150,000,000, at a time when the fair value of the stock was $120,000,000. The tax authorities permit a level annual cost recovery of goodwill over 15 years. The management of Cannon found no impairment of value in its investment in Shell Electronics in 2018 In August 2018, Cannon had to pay $12,000,000 to the tax authorities, based on a miscalculation of prior years' taxes. This payment included interest of $1,000,000. Cannon's expense for import duties in 2018 was $15,200,000. The company will be permitted one-half of that amount as a deduction in 2018, with no carry-over to future years. In September 2018, Cannon was notified that the courts had determined that a $20,000,000 'marketing" payment made during 2018 to a company in the country of Concretia was illegal under the requirements of the U.S. Foreign Corrupt Practices Act. Later that month, Cannon was notified of a court decision that a similar payment made in 2017 to a company in Grand Wachovia, for $18,000,000, was also illegal. For 2018, accelerated cost recovery of $36,600,000 was allowed for tax purposes on Cannon's property, plant and equipment. Depreciation determined using generally accepted accounting principles was $49,200,000. Two-thirds of the carry-over of the 2017 charitable contribution was available as a deduction in 2018. . At December 31, 2018, Cannon's management made a calculation of earnings before taxes of $200,000,000. However, an accounting error was subsequently discovered (an expense of $16,000,000 had been improperly capitalized as an asset) and was corrected. Prepare a schedule for the computation of taxable income for Cannon Corporation for 2018. 2. In 2017, the Cannon Corporation recorded a book income before taxes of $64,800,000. The company's depreciation expense was less than government cost-recovery by $8,000,000. A payment the company made that year for a charitable contribution of $22,000,000 was deductible for tax purposes only to the extent of $7,000,000. Cannon also had a net operating loss carryforward to 2018 of $17,000,000. Cannon had the following transactions and circumstances during 2018: Effective January 2, 2018, Cannon made a 40% investment in the Fuse Technologies Company. Fuse's net income for calendar-year 2018 was $90,000,000. Cannon earned interest of $7,600,000 on tax-exempt bond investments. On May 1, 2018, Cannon sold a building in which It had a carrying value of $66,000,000 for $52,000,000 in cash. On June 30, 2018, Cannon purchased 100% of the capital stock of Shell Electronics Co. for $150,000,000, at a time when the fair value of the stock was $120,000,000. The tax authorities permit a level annual cost recovery of goodwill over 15 years. The management of Cannon found no impairment of value in its investment in Shell Electronics in 2018 In August 2018, Cannon had to pay $12,000,000 to the tax authorities, based on a miscalculation of prior years' taxes. This payment included interest of $1,000,000. Cannon's expense for import duties in 2018 was $15,200,000. The company will be permitted one-half of that amount as a deduction in 2018, with no carry-over to future years. In September 2018, Cannon was notified that the courts had determined that a $20,000,000 'marketing" payment made during 2018 to a company in the country of Concretia was illegal under the requirements of the U.S. Foreign Corrupt Practices Act. Later that month, Cannon was notified of a court decision that a similar payment made in 2017 to a company in Grand Wachovia, for $18,000,000, was also illegal. For 2018, accelerated cost recovery of $36,600,000 was allowed for tax purposes on Cannon's property, plant and equipment. Depreciation determined using generally accepted accounting principles was $49,200,000. Two-thirds of the carry-over of the 2017 charitable contribution was available as a deduction in 2018. . At December 31, 2018, Cannon's management made a calculation of earnings before taxes of $200,000,000. However, an accounting error was subsequently discovered (an expense of $16,000,000 had been improperly capitalized as an asset) and was corrected. Prepare a schedule for the computation of taxable income for Cannon Corporation for 2018