Question 16 10 pts X, a calendar year, accrual basis corporation, reported $479,900 net income after tax on its financial statements prepared in accordance with GAAP The corporation's financial records reveal the following information: . X earned $10,700 on an investment in tax-exempt municipal bonds. X's allowance for bad debts as of January 1 was $21,000. Write-offs for the year totaled $4,400, while the addition to the allowance was $3,700. The allowance as of December 31 was $20,300 On August 7. X paid a $6,000 fine to a municipal government for a violation of a local zoning ordinance. X's depreciation expense per books was $44,200, and its MACRS depreciation deduction was $31,000, . This is X's second taxable year. In its first taxable year, it recognized an $8,800 net capital loss. This year, it recognized a $31,000 long term capital gain In its first taxable year, X capitalized $6,900 organizational costs for tax purposes and elected to amortize the costs over 180 months. For book purposes, it expensed the costs. X's federal income tax expense per books was $151,000