i\ Help\ Save & Exit\ Subm\ Micro, an accrual basis corporation, reported

$518,100

net income before tax on its financial statements prepared in accordance with GAAP. Micro's records reveal the following information:\ Micro paid

$27,600

in legal fees and

$72,000

to a former employee to settle a claim of sexual harassment. To avoid negative publicity, Micro insisted that the settlement include a confidentiality agreement.\ Late in the year, Micro entered into a five-year licensing agreement with an unrelated firm. The agreement entitles the firm to use a Micro trade name in marketing its own product. In return, the firm will pay Micro an annual royalty of 1 percent of gross revenues from sales of the product. The firm paid a

$66,000

advanced royalty to Micro on the day the agreement was finalized. For financial statement purposes, this prepayment was credited to an unearned revenue account.\ In December of the current year, Micro received a

$7,600

advance payment on rental income from a tenant to whom Micro sublets some of its unused office space. The payment relates to use of the rented space in January and February of the coming year. For financial accounting purposes, this prepayment was credited to an unearned revenue account.\ At its final meeting for the year, Micro's board of directors authorized a

$16,800

salary bonus for the corporation's president as a reward for outstanding performance. Micro paid the bonus on January 12. The president doesn't own enough Micro stock to be considered a related party for federal tax purposes.\ Micro was incorporated last year. On its first tax return, it reported a

$22,700

net operating loss.\ Micro follows a calendar year.\ Required:\ Compute Micro's taxable income.\ Note: Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required.\ \\\\table[[,Amount],[Micro's net book income before tax,518,100],[Sexual harassment settlement and legal fees,

(27,600)

Micro, an accrual basis corporation, reported $518,100 net income before tax on its financial statements prepared in accordance with GAAP. Micro's records reveal the following information: - Micro paid $27,600 in legal fees and $72,000 to a former employee to settle a claim of sexual harassment. To avoid negative publicity, Micro insisted that the settlement include a confidentiality agreement. - Late in the year, Micro entered into a five-year licensing agreement with an unrelated firm. The agreement entitles the firm to use a Micro trade name in marketing its own product. In return, the firm will pay Micro an annual royalty of 1 percent of gross revenues from sales of the product. The firm paid a $66,000 advanced royalty to Micro on the day the agreement was finalized. For financial statement purposes, this prepayment was credited to an unearned revenue account. - In December of the current year, Micro received a $7,600 advance payment on rental income from a tenant to whom Micro sublets some of its unused office space. The payment relates to use of the rented space in January and February of the coming year. For financial accounting purposes, this prepayment was credited to an unearned revenue account. - At its final meeting for the year, Micro's board of directors authorized a $16,800 salary bonus for the corporation's president as a reward for outstanding performance. Micro paid the bonus on January 12. The president doesn't own enough Micro stock to be considered a related party for federal tax purposes. - Micro was incorporated last year. On its first tax return, it reported a $22,700 net operating loss. Micro follows a calendar year