Advertising expense 85,000 Bad debt expense 2,100 Interest expense (all trade-or business related) 45,000 Rent expense 7,400 Travel expense (meals cost $4,050 of this amount) 11,020 Repairs and maintenance expense 68,300 Accounting and legal expense 3,600 Charitable contributions (d) 16,400 Payroll taxes 5,180 Other taxes (all trade-or business related) 1% Total expenses 494 115 Operating profit $510,835 Other income and losses: Gain on sale of AB stock(e) $18,000 Loss on sale if CD stock(f) (26,075) SEC. 1231 gain on sale of land(g) 5,050 Interest on U.S Treasury bills for entire year (80,000 face amount) 2,000 Dividends from 15%-owned domestic corporation 11,000 9,975 Net income $520,810 (a) Additional SEC. 263A costs of $7.000 for the current vear are included in other costs