8.

Oriole Company reports pretax financial income of $65,800 for 2025 . The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $16,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $20,500. 3. Fines for pollution appear as an expense of $10,200 on the income statement. Oriole's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025 . (a) Compute taxable income and income taxes payable for 2025. Taxable income $ Income taxes payable $