Question 7 10 Points The Cat Corporation had $20,000 of book income in the current year. The following is a list of differences between federal and book income and expenses: Federal income tax expense deducted for books $4,400

Depreciation deducted on books $3,000

Depreciation deducted on tax return $14,000

50 percent of meals expense not allowed as an expense for taxes $2,000

Charitable contributions carried over from prior years and deducted on the current year tax return $2,300

Current year taxable gain on an installment sale which was reported on the books in a previous year $5,000

Prepaid interest not deductible in the current year for tax purposes but claimed as a deduction for book income purposes $10,000

Nondeductible club dues $1,000 Based on the above information,

calculate the Cat Corporations federal taxable income for the year. Show your calculations.