Mazys is large department store chain that operates throughout the United States. It is a C Corporation with a yearend of January 31. For the year ended January 31, 2020, the results of operations are as follows:

1. Mazys estimates sales returns and nets this number against actual sales. For the year ended January 31, 2020, this number was $ 1,860,000,000. The actual dollar value of returns during the year was $ 1,980,000,000.
2. Mazys sells gift cards and recognizes the income when the gift card is redeemed, For tax purposes, revenue is recognized when the gift card is sold. During the year, Mazys sold $ 554,000,000 of gift cards. It recognized $ 2,088,000,000 in income from use of gift cards for financial statement purposes.
3. At yearend, Mazys had received $ 94,000,000 in payments for goods yet to be delivered to customers. Amounts are not included in financial statement receipts until handed over or delivered to customers. There had been no amount in the previous year.
4. Mazys used the Last-In, First Out (LIFO) method of inventory valuation utilizing the Lower of Cost or Market Method. Lower of Cost or Market is not allowable for tax purposes if LIFO is utilized. Without the Lower of Cost or Market, Cost of Sales would have been $ 970,000,000 lower. Use of the First-In, First-Out (FIFO) would have resulted in a reduction of Cost of Sales of $ 1,670,000,000.
5. The gains on sales of real estate was all on assets held for more than one year.
6. Mazys self-insures for workmans compensation and general liability. During the year, the Company added $ 120,000,000 to its self insurance reserve. During the year, $ 145,000,000 was actually paid out of the reserve.
7. Mazys issues stock options, both incentive and nonqualifed to employees. During the year, the Company recognized financial statement expense related to the options of $ 445,000,000. During the year $ 123,000,000 of incentive stock options were exercised with an excess of fair market value over exercise price of $ 23,000,000. Nonqualified options of $ 187,000,000 were exercised during the year with the excess of fair market value of exercise price of $ 51,000,000.
8. Mazys has a nonqualified deferred compensation plan for senior executives. $ 32,000,000 was added to account during the year. $7,400,000 was paid out to retired executives.
9. Included in this amount was depreciation expense of $ 1,245,000,000. Of this amount, $ 1,005,000,000 represents depreciation of personal property. The property was depreciated using straight-line depreciation over the propertys actual useful life. MACRS depreciation including bonus depreciation of the personal property would have resulted in an expense of $ 1,910,000,000. All property, including the real property, was acquired after 1998. Depreciation on real property was done using the straight-line method over 40 years. Depreciating the property over 39 years would have resulted in an expense of $ 260,000,000.
10. Included in this amount are non-entertainment meals of $78,000,000 and entertainment expenses of $354,000,000.
11. During the year, Mazys found its goodwill had been impaired to the tune of $ 143,000,000 and expensed this amount, Amortization for tax purposes of goodwill was $ 97,000,000
12. The restructuring and impairment costs do not meet the all events tests needed to justify a deduction for accrual basis taxpayers with the exception of $ 113,000,000 of severance pay actually paid to terminated employees.
13. The benefit plan income was not realized under the fixed and determinable requirement needed for an accrual taxpayer to be required to recognized earned but not received income.
14. Included in this amount is income from a Hong Kong Joint Venture which Mazys owned a 65% interest. Because under joint venture agreement, the other joint venturer was in control, the joint venture was not consolidated. Mazys did pick up its share of income of $ 16,700,000. For tax purposes, Mazys share of the taxable income was $ 22,350,000. Mazys terminated their interest by selling out to the other joint venturer in December 2019. They recognized a $ 7,100,000 loss..
15. Included in this amount was $ 12,148,000 of interest income from short term commercial paper. This was the only business interest for the year
16. This is the only business interest expense of the company.
17. Loss is not deductible for tax purposes.
18. $ 124,000,000 represents federal income tax expense.
19. Mazys had a $ 118,000,000 capital loss carryover from the tax year ended January 31, 2018.

Question:

1. Compute Mazys Federal Income Tax for the year ended January 31, 2020. Please show your calculation.

Sales: 24,560,000,000 (1)(2)(3) 15,171,000,000(4) 9,389,000,000 Cost of Sales Gross Margin Credit Cd Revenue Gains on Real Estate Operating Revenue 771,000,000 162,000,000(5) 10,322,000,000 Operating Expenses: Sales, General and Administrative 8,998,000,000 (6)(7)(8)(9)(10)(11) 354,000,000(12) 9,352,000,000 Restructuring, Impairment and Store Closing Total Operating Expenses Operating Income 970,000,000 Other Income Benefit Plan Income Interest Income 31,000,000(13) 20,000,000 (14)(15) 51,000,000 Total Other Income Other Expenses and Losses Settlement Charges Interest Expense 58,000,000 205,000,000(16) Loss on Debt Extinguishment Total Other Expense 30,000,000(17) 293,000,000 Net Income before Income Tax Income Tax Expense Net Income 728,000,000 164,000,000 564,000,000 Sales: 24,560,000,000 (1)(2)(3) 15,171,000,000(4) 9,389,000,000 Cost of Sales Gross Margin Credit Cd Revenue Gains on Real Estate Operating Revenue 771,000,000 162,000,000(5) 10,322,000,000 Operating Expenses: Sales, General and Administrative 8,998,000,000 (6)(7)(8)(9)(10)(11) 354,000,000(12) 9,352,000,000 Restructuring, Impairment and Store Closing Total Operating Expenses Operating Income 970,000,000 Other Income Benefit Plan Income Interest Income 31,000,000(13) 20,000,000 (14)(15) 51,000,000 Total Other Income Other Expenses and Losses Settlement Charges Interest Expense 58,000,000 205,000,000(16) Loss on Debt Extinguishment Total Other Expense 30,000,000(17) 293,000,000 Net Income before Income Tax Income Tax Expense Net Income 728,000,000 164,000,000 564,000,000