Croyden's records reveal the following facts:

Under the UNICAP rules, Croyden had to capitalize $$142,800$ of administrative wages to inventory. These wages were expensed for

financial statement purposes.

Because of the UNICAP rules, Croyden's cost of goods sold for tax purposes exceeds the cost of goods sold for financial statement

purposes by $$219,000.$

Bad debt expense equals the addition to the corporation's allowance for bad debts. Actual write$-$offs of uncollectible accounts

during the year totaled $$31,200.$

Administrative salaries include an accrued $$50,000$ year$-$end bonus to Mr$.$ Croyden and an accrued $$20,000$ year$-$end bonus to Mrs$.$

Croyden. These bonuses were paid on January $17$ of the following year.

The life insurance premiums were on key$-$person policies for Mr$.$ and Mrs$.$ Croyden. The corporation is the policy beneficiary.

Croyden disposed of two assets during the year. $($These dispositions are not reflected in the financial statement information shown.$)$

It sold office furnishings for $$45,000.$ The original cost of the furnishings was $$40,000,$ and accumulated MACRS depreciation

through date of sale was $$12,700.$ It also exchanged transportation equipment for a $15$ percent interest in a partnership. The original

cost of the transportation equipment was $$110,000,$ and accumulated MACRS depreciation through date of exchange was $$38,900.$

MACRS depreciation for assets placed in service in prior years $($including the office furnishings and transportation equipment

disposed of this year$)$ is $$187,600.$ The only asset acquired this year was new equipment costing $$275,000.$ The equipment has a

seven$-$year recovery period and was placed in service on February $11.$ Assume that Croyden does not elect Section $179$ or bonus

depreciation with respect to this acquisition.

Croyden's prior$-$year tax returns show no nonrecaptured Section $1231$ losses and a $$7,400$ capital loss carryforward.

Required:

Solely on the basis of these facts, compute Croyden's taxable income.

Note: Round your intermediate computations to the nearest whole dollar amount.Croyden is a calendar year, accrual basis corporation. Mr$.$ and Mrs$.$ Croyden $($cash basis taxpayers$)$ are the sole corporate

shareholders. Mr$.$ Croyden is president of the corporation, and Mrs$.$ Croyden is vice president. Croyden's financial records, prepared in

accordance with GAAP, show the following information for the year: Use Table $7-1$ and Table $7-2$