Kristi Corporation, a calendar-year, accrual-basis corporation had net income per the books of $750,000 for the current year.

Included in this number were the following items:

Federal income taxes $200,000

Interest income on U.S. treasury bonds 26,000

Interest income on municipal bonds 22,000

Charitable contribution in excess of 10% limitation 4,000

Tax penalty assessed by IRS 1,000

Capital loss on sale of land (no other capital asset sales) 3,000

Business entertainment expense 20,000

Depreciation expense (MACRS = $60,000) 50,000

Calculate Kristi Corporation's taxable income before special deductions for the current year.