Problem 2-3. OK here comes the big word problem!

IMTU Corporation (it stand for " Made This Up") had sales last year of $1,000,000. They sell heat shields to place on your lap for stupid McD's customers who insist on placing a cup of hot coffee between their legs. The materials cost $80,000 (that's good) but the labor to put them together costs $750,000 (yes they are union and yes the company is looking to move this operation "off-shore" next year but that's beyond the scope of this course). Advertising was just $50,000, as they mostly use word-of-mouth. They did need to raise some money this year. The bank loaned them $150,000 at 8% (that interest is due this year). The interest didn't worry them too much as it was partyly off-set by the dividend check they received from McDonalds for $8,000 (hmmmmm - I wonder if there is a cinflict of interest here?) Anyway, all things considered, "it was a very good year" (and they are not even 17 - there's a joke or trivia item imbedded here - one bonus point if you can explain what it is), so much so they paid their loyal shareholders $50,000 in common stock dividends. OK, given all that, what was their Federal tax bill?

NOTE: you MUST show (type in) all work. Label each line item and indicate clearly what your final answer is. VERY FEW points if all you show me is just your final answer.