On January 1, 2019, NSP Corporation, a calendar year, accrual basis C corporation

was organized and began business operations. NSP provides network security

protection services for businesses. During 2019, it had financial income (per books)

before tax of $1,000,000.

The following items were

expensed

in arriving at NSPs 2019 financial income (per

books):

$20,000 of organization costs to organize the corporation; the federal tax

amortization amounted to $6,000.

$20,000 increase to its allowance for doubtful accounts; actual bad debts written

off amounted to $5,000.

$100,000 straight-line financial depreciation; total federal tax depreciation

amounted to $500,000.

$7,000 life insurance premium paid on a key officer of the corporation.

$5,000 political contribution made to a candidate running for a seat in the United

States House of Representatives.

$20,000 of meals and entertainment expenses.

What is NSP Corporations 2019 federal taxable income and federal income tax liability?

Please show your work and explain your calculations.