Inc. reported earnings before income taxes of $3,450,000 in 20X9. The tax rate for this year is 40%. Item

1. Golf club dues, $52,000
2. Depreciation expense, $68,000
3. Development costs incurred during year; capitalized for accounting purposes, $260,000
4. Warranty costs accrued during year, $46,000
5. Interest and penalty for late payment payroll taxes, $65,000
6. CCA, $500,000
7. Amortization of capitalized development costs, $26,000
8. Costs incurred during year for warranty work completed, $34,500

Required: 1. After adjusting for all of the items listed above, what is the taxable income? 2. What is the amount of income taxes payable?