Required information [The following information applies to the questions displayed below] XYZ is a calendar-year corporation that began business on January 1,2023. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. 1XYZ owns 30% of the outstanding Hobble Corporation (HC) stock. Hobble Corporation reported $1,000,000 of income for the year. XYZ occounted for its investment in HC under the equity method, and it recorded its pro rata share of HC's earnings for the year. HC also distnibuted a $200,000 dividend to XYZ. For tax purposes. HC reports the actual dividend received as income, not the pro rata share of HCs earnings 2 or the $20,000 interest income, $5,000 was from a City of Seattle bond, $7,000 was from a Tacoma City bond, $6,000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market account. 1YZ owns 30% of the outstanding Hobble Corporation (HC) stock. Hobble Corporation reported $1,000,000 of income for the year XYZ accounted for its investment in HC under the equity method, and it recorded its pro rata share of HC's earnings for the year. HC also distributed a $200,000 dividend to XYZ For tax purposes, HC reports the actual dividend received as income, not the pro rata share of HC's earnings. 2 Of the $20,000 interest income, $5,000 was from a City of Seartle bond, $7,000 was from a Tacoma City bond, $6,000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market occount. 3 This gain is from equipment that XYZ purchased in February and sold in December (1.e, it does not qualify as 51231 gain). 4 This includes total officer compensation of $2,500,000 (no one officer received more than $1,000,000 compensation) 5 This amount is the portion of incentive stock opton compensation that was expensed during the year (reciplents are otficers) 6 XYZ actually wrote off $27,000 of its accounts receivable as uncollectuble 7 Tax depreciation was $1,900,000. In the current year, XYZ did not make any actual payments on warranties it provided to customers 9YZ made $500,000 of cash contributions to charities during the yeac. 10 On July 1 of this year, XYZ acquired the assets of another business. In the process, it acquired $300,000 of goodwill. At the end of the year, XYZ wrote off $30,000 of the goodwal as impaired. 10YZ expensed all of its organizational expenditures for book purposes XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes. 12 The other expenses do not contain any tiems with book-1ax differences 13 This is an estimated tax provision (tederal tax expense) for the year. Assume that XYZ is not subject to state income taves Estimated tax information XYZ made four equal estimated tax payments totaling $360,000 (\$90,000 per quarten). For purposes of estimated tax determined its taxable income of the end of each of the first three quarters as follows: Finally, assume that XYZ is not a large corporation for purposes of estimated rax calculations Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. a. Compute XYZ s taxable income