Delta Real Estate reported taxable income of $1,700,000. An audit found that $200,000 in tax-deductible repairs and maintenance costs were not deducted, and $50,000 in non-deductible lobbying expenses were included in the calculations.

Requirement: Adjust the taxable income and calculate the correct tax liability assuming a corporate tax rate of 26%. Discuss the errors found.

###question_divider###