Candy Cane Corporation, a calendar year accrual basis corporation, reported $$5$ million of net income after tax on its current year financial statements prepared in accordance with GAAP. In addition, the following information is available from Candy Cane's books and records:

Federal income tax expense per books was $$1\mathrm{.}5$ million.

Candy Cane incurred $$30,000$ of meals and $$25,000$ of entertainment expenses. Assume for tax purposes that the meal costs are $50\%$ deductible and that the entertainment costs are not deductible.

Candy Cane sold two pieces of equipment used in its business for total sales proceeds of $$400,000.$ The equipment's original cost was $$2$ million. Book depreciation prior to sale totaled $$1\mathrm{.}2$ million; tax depreciation totaled $$1\mathrm{.}5$ million.

Candy Cane uses the reserve method of accounting for bad debts. Additions to the reserve during the year totaled $$400,000.$ Accounts receivable actually written off during the year totaled $$450,000.$

Candy Cane's depreciation expense for book purposes totaled $$1,050,000.$ Tax depreciation computed under MACRS is $$1\mathrm{.}25$ million.

Determine Candy Cane's regular tax liability. Assume the corporation's tax rate is $21\%.$