Pharoah Company began operations at the beginning of $2026.$ The following information pertains to this company.

Pretax financial income for $2026$ is $$91,000.$

The tax rate enacted for $2026$ and future years is $20\%.$

Differences between the $2026$ income statement and tax return are listed below:

$($a$)$ Warranty expense accrued for financial reporting purposes amounts to $$6,900.$ Warranty deductions per the tax return amount to $$1,900.$

$($b$)$ Gross profit on construction contracts using the percentage$-$of$-$completion method per books amounts to $$86,200.$ Gross profit on construction contracts for tax purposes amounts to $$67,000.$

$($c$)$ Depreciation of property, plant, and equipment for financial reporting purposes amounts to $$63,100.$ Depreciation of these assets amounts to $$83,800$ for the tax return.

$($d$)$ A $$3,100$ fine paid for violation of pollution laws was deducted in computing pretax financial income.

$($e$)$ Interest revenue recognized on an investment in tax$-$exempt municipal bonds amounts to $$1,300.$

Taxable income is expected for the next few years. $($Assume $($a$)$ is short$-$term in nature; assume $($b$)$ and $($c$)$ are long$-$term in nature.$)$

$($a$)$

Compute taxable income for $2026.$

Taxable income for $2026$