During 2021, Legolas Corporation has several differences between their pre-tax accounting income and their taxable income. Legolas Corporation provides the following information for 2021:

Item	Amount
Income before taxes (GAAP)	$400,000
Cash sales	$138,000
Sales on account (taxable when cash is received)	$55,000
Estimated warranty expense (deductible when cash is paid)	$78,000
Interest revenue from a tax-free municipal bond	$74,000

There are no other possible book-tax differences for 2021. What is Legolas Corporations taxable income for 2021?

$423,000

$487,000

$211,000

$349,000