On January 01, 2013, Merrill purchased a new piece of manufacturing equipment for $400,000. Merrill uses straight-line depreciation over four years for GAAP (book) purposes; for tax purposes, the depreciation deduction is 40% of cost during 2013, 30% of cost during 2014, 20% of cost during 2015, and 10% of cost during 2016. During 2013, Merrill expensed $160,000 of warranty costs that will be deducted for tax purposes in future years. Merrill also accrued revenue totaling $270,000 in 2013 (.e., it was included in revenues for 2013) which is taxable in 2014. Merrill's GAAP (book) income before taxes during 2013 totaled $760,000. The marginal income tax rate is 40% for all years. Required: What is Merrill's taxable income (IRS) for 2013