Please can someone answer this as soon as possible! I need to figure out the net income, not the taxable income.

Book Income2, 2 points, due 0616 Please refer to the multiple-choice question pasted on page 2. To understand corporate tax returns, you must have a good understanding of financial income statements. So please prepare an income statement based on the facts provided. I provide a template, but you can use your own and you are welcome to submit in Excel. I plan to follow up with tax returns. Tip: once you have prepared your income statement, check it to make sure that the totals compute. You can use the template provided, or you can use your own. In either case, you are responsible for an aesthetic presentation Sales Revenue Cost of Goods Sold Gross Profit 0 Assume zero 2,000 Assume $2,000 Operating Expenses Depreciation Expense Operating Income: Other revenue (loss) Net capital Loss Interest Revenue Income Before Taxes Income Tax Expense Net Income wingsoon [17] For the current year, accrual basis Corp. A's books and records reflected the following: Not income per books $104,000 Accrued federal income tax 35.000 Net capital loss 4,000 Tax-exempt interest 5,000 Book depreciation in excess of allowable tax depreciation 2.000 Based on the above facts, what is the amount of A's taxable income? A. $69.000 B. $70,000 C. $140,000 D. $150,000 The correct answer is C. A. Federal income tax is added to, not subtracted from, book net income. Also, the net capital loss and excess book depreciation must be added back, and tax-exempt interest income must be subtracted. B. Federal income taxes are not subtracted; they are added back to book net income. C. Federal income tax, excess capital losses, and book depreciation in excess of tax depreciation are not deductible. These amounts must be added back to book income Tax- exempt interest is not taxable and must be subtracted from book income. These adjustments are done on Schedule M-1 of the corporation tax return. Net income per books $104,000 Add back: Federal income tax 35,000 Net capital loss 4,000 Excess book depreciation 2,000 $145,000 Subtract: Tax-exempt interest (5,000) Taxable income $140,000 D. The tax-exempt interest is not added back; it is subtracted from book net income