Question 20

Slumar, an accrual basis, calendar year corporation, reported $7,289,200 book income before tax on its financial statement prepared in accordance with GAAP. The corporate records reveal the following information. The allowance for bad debts on January 1 was $104,700. Write-offs for the year totaled $113,228, and the addition to the allowance for the year was $105,000. Slumar's depreciation expense per books was $40,980, and its MACRS depreciation deduction was $77,270. Slumar capitalized $32,670 indirect expenses to manufactured inventory for book purposes and $48,020 indirect expenses to manufactured inventory under the unicap tax rules. Compute Slumar's taxable income.

Group of answer choices

$7,260,032

$7,276,488

$7,229,332

$7,245,788