Chapter 16 Book-Tax Differences Exercise I 1. The Yellow Corn. 2023 Income Statement and additional information is shown below: See notes on the reverse side: Notes: 1XYZ Corp. also received a rent payment \$1,700 for January 2024. 2 Officer's compensation was for the five highest compensated officers of $1,500,000,$1,050,000, $400,000,$300,000 and $200,000. 3 Warranty expense is estimated at 1% of sales. In 2023 , XYZ incurred $40,000 of warranty costs for product sold in 2022 as well as $50,000 in warranty costs for product sold in 2023 . 4$75,000 of depreciation was deducted in 2023 for Federal tax purposes. 5 In addition, XYZ has a $100,000 capital loss carryforward from 2022. 6 The provision for income taxes includes $200,000 for Federal and the remainder for State income taxes. Required: Calculate Taxable Income starting with Net Income on the attached Excel spreadsheet of Schedule M-1