Arnold Corporation (a calendar-year, accrual-basis taxpayer) reported $500,000 pre-tax income on its financial statements for the year. In examining its records, you find the following:

$3,000 of interest income from municipal bonds

Arnold wrote off $900 of accounts receivable as uncollectible and added $3,000 to

its allowance for bad debts this year.

Straight-line depreciation for financial reporting is $75,000; MACRS tax depreciation is $130,000

Arnold paid $2,800 in premiums on key officer life insurance policies for which

it is the beneficiary.

Arnold incurred $20,000 of meals expenses which were expensed for GAAP

Arnold paid $2,500 in fines for violation of local noise ordinance.

Arnold has Goodwill that was not impaired during the year. Tax amortization

for the year was $25,000.

Perform a book to tax reconciliation and identify each book tax difference as a permanent or temporary difference. What is Arnold Corporations tax liability?