Floyd Corporation was formed and began operations on January 1, 2020. The corporation is located at 210 N. Main St., Pearisburg, VA 24134 and the EIN is 91-1111111. The corporation's income statement for the year and the balance sheet at year-end are presented below.

The Floyd Corporation Income Statement for the Year Ended December 31, 2020
Gross income from operations			$320,000
Qualified dividends received from a 15 percent-owned domestic corporation			20,000
Total gross income			340,000
Cost of goods sold			(70,000)
Total income			270,000
Other expenses:
Compensation of officers	$80,000
Salaries and wages	20,000
Bad debts (direct charge-offs)	9,000
Repairs	3,000
Depreciation for book (tax depreciation = $90,000)	10,000
Advertising	3,000
Payroll taxes	15,000
Total other expenses			(140,000)
Pretax book income			130,000
Income tax expense			25,200
Net income			$104,800
The Floyd Corporation Balance Sheet as of December 31, 2020
Assets:
Cash	$140,600
Accounts receivable	20,000
Inventory (at cost)	70,000
Equipment	90,000
Less: accumulated depreciation	(10,000)
Total assets			$310,600
Liabilities and owners' equity:
Accounts payable	$ 24,000
Other liabilities	16,800
Note payable (due in 10 years)	85,000
Common stock	80,000
Retained earnings	104,800
Total liabilities and owners' equity			$310,600

The corporation made estimated tax payments of $9,000. Assume any overpayment is credited to the 2021 estimated tax.

Required: Calculate step by step taxable income

Taxable Income MUST BE $40,000