Dewey Corporations book income before federal income taxes was $520,000 for the year ended December 31, 2007. Dewey was incorporated during 2007 and began business in June. Organization costs of $257,400 were expensed for financial statement purposes during 2007. For tax purposes these costs are being written off over the minimum allowable period. For the year ended December 31, 2007, Deweys taxable income was

1. $520,000
2. $747,900
3. $767,390
4. $778,000