Data for Rica Enterprises are as follows:

Revenue on business 29,900,000

Interest income 1,000,000

Gross revenue 30,900,000

Returns, allowances & discounts 900,000

Cost of Sales/Services 15,100,000

Direct Materials 5,530,000

Direct Labor 4,085,000

Direct Factory overhead 5,485,000

Actual operating expenses incurred:

Salaries & wages 3,400,000

Interest Expense 1,200,000

Travel expenses 2,500,000

Taxes 2,700,000

Rental expense 2,800,000

Training Expenses 500,000

Representation & entertainment 600,000

Depreciation 900,000

14,600,000

Using the assumptions given compute the following:

1. Net taxable income for the year

2. Tax due for the year