Luong Corporation, a calendar year, accrual basis corporation, reported $1.70 million of net income after tax on its financial statements prepared in accordance with GAAP. Luong's federal income tax expense per books was $214,000. Luong's book income included $24,000 of dividends received from a domestic corporation in which Luong owns a 25 percent stock interest, and $11,000 of dividends from a domestic corporation in which Luong owns a 5 percent stock interest. Luong recognized $24,000 of capital losses this year and no capital gains. Luong recorded $15,000 of book expense for meals not provided by a restaurant and $17,000 of book expense for entertainment costs: depreciation expense for book purposes totaled $414,000. MACRS depreciation was $475,000