Long Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its financial statements Dredared in accorc lance with GAAP. The corporation's books and records revea the following information. Lung's federal income tax expense per books was $200.000. Long's book income included $10,000 of dividends received from a domestic corporation in which Lung owns a 25 percent stock interest, and $4,000 of dividends from a domestic corporation in which Lung owns a 5 percent stock interest. Luong recognized $10,000 of capital losses this year and no capital gains Luong recorded $8,000 of book expense for meals not provided by a restaurant and $10,000 of book expense for entertainment cOSts. Long's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000 Required: a. Compute Lung's federal taxable income and regular tax liability.