EFG, an accrual basis calendar year corporation, reported $527,000 net income before tax on its financial statements prepared in accordance with GAAP. EFGs records reveal the following information:

• The allowance for bad debts as of January 1 was $59,000. Write-offs for the year totaled $17,350, and the addition to the allowance for the year was $15,000. The allowance as of December 31 was $56,650.
• EFG paid a $18,445 fine to the state of Delaware for a violation of state pollution control laws.
• EFG was sued by a consumers' group for engaging in false advertising practices. Although EFGs lawyers are convinced that the suit is frivolous, its independent auditors insisted on establishing a $52,700 allowance for contingent legal liability and reporting a $52,700 accrued expense on the income statement.
• EFG received a $173,910 advanced payment for 10,000 units of inventory on October 20. EFG reported the payment as revenue the following February when the units were shipped.

Required: Compute EFG's taxable income. (Amounts to be deducted should be indicated with a minus sign.)

EFG, an accrual basis calendar year corporation, reported $527,000 net income before tax on its financial statements prepared in accordance with GAAP. EFGs records reveal the following information:

• The allowance for bad debts as of January 1 was $59,000. Write-offs for the year totaled $17,350, and the addition to the allowance for the year was $15,000. The allowance as of December 31 was $56,650.
• EFG paid a $18,445 fine to the state of Delaware for a violation of state pollution control laws.
• EFG was sued by a consumers' group for engaging in false advertising practices. Although EFGs lawyers are convinced that the suit is frivolous, its independent auditors insisted on establishing a $52,700 allowance for contingent legal liability and reporting a $52,700 accrued expense on the income statement.
• EFG received a $173,910 advanced payment for 10,000 units of inventory on October 20. EFG reported the payment as revenue the following February when the units were shipped.

Required: Compute EFG's taxable income. (Amounts to be deducted should be indicated with a minus sign.)

	Amount
EFG's net book income before tax
Bad debt
Fines
Contingent liability
Advanced payment for inventory
EFG's taxable income