Prior to 2010, taxable income and pretax financial income were identical. Pretax financial income is $1,700,000 in 2010 and $1,400,000 in 2011. On January 1, 2010, equipment costing $1,200,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) Interest of $60,000 was earned on tax-exempt municipal obligations in 2011. Included in 2011 pretax financial income is an extraordinary gain of $200,000, which is fully taxable. The tax rate is 35% for all periods. Taxable income is expected in all future years. Compute taxable income and income tax payable for 2011. Taxable income $ Income tax payable $