Psi Retail

• Psi Retail reported taxable income of $1,900,000.
• $250,000 in travel expenses were not deducted.
• $100,000 in personal expenses were included as business expenses.
• A tax credit of $50,000 for renewable energy investments was overlooked.

Requirement: Adjust the taxable income and calculate the correct tax liability at a corporate tax rate of 28%. Identify and correct the errors.

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