ABC Co. reported $3,092,414 net income before tax on this year's financial statements prepared in accordance with GAAP. The corporation's records reveal the following information.

1. Depreciation expense per books was $99,400, and MACRS depreciation was $289,400.

2. An earthquake destroyed the warehouse. ABC Co. book basis of the warehouse was $1,400,000 and its tax basis in the warehouse was $1,225,000. ABC Co. reimbursement from its insurance company was $1 million.

3. Net income per books includes a $11,760 net capital gain. ABC Co. has a $36,000 capital loss carryforward into the current year.

4. Four years ago, ABC Co. realized a $90,000 gain on the sale of investment property and elected the installment sale method to report the gain for tax purposes. Its gross profit percentage is 37.45%, and it received a $40,000 principal payment on its installment note this year.

Required: Compute ABC Co. taxable income.