On January 1, 20X1, Company XYZ started operations. The company acquired a piece of equipment by issuing a note payable on that date. The note had a below market rate of interest Terms of the purchase of the equipment Note payable Note term Coupon rate Market rate $480,000 6 years 1.60% 4.80% The note is due in equal annual payments of principle and interest. The company uses straight-line depreciation for book purposes. Depreciation information on the equipment: Useful life of the equipment, no salvage 20X1 Tax depreciation Tax rate 8 years $120,000 30% The accountant ignored market rate when producing the below income statement. Income Statement for the year ended December 31, 20X1 Sales Expenses $1,574,000 1.369.000 60.000 Useful life of the equipment, no salvage 20X1 Tax depreciation Tax rate On the equipment: 8 years $120,000 30% The accountant ignored market rate when producing the below income statement. Income Statement for the year ended December 31, 20X1 Sales Expenses Depreciation expense Interest expense $1,574,000 1,369,000 60,000 7.680 137,320 Tax expense 41,196 Net income $96,124 What is the correct net income for 20X1? Pretax income