Required information [The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began business on January 1, 2021. 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. XYZ corporation Income statement For current year Revenue from sales Cost of Goods Sold Gross profit Other income: Income from investment in corporate stock Interest income Capital gains (losses). Gain or loss from disposition of fixed assets Miscellaneous income Gross Income Compensation Stock option compensation Advertising Repairs and Maintenance Rent Bad Debt expense Depreciation Warranty expenses Charitable donations Meals (all at restaurants) Goodwill impairment Organizational expenditures Other expenses Total expenses Income before taxes Provision for income taxes Net Income after taxes Expenses: Book Income $ 40,000,000 (27,000,000) $ 13,000,000 300,0001 20,000 (4,000) 3,0003 50,000 $ 13,369,000 (7,500,000) 4 (200,000)5 (1,350,000) (75,000) (22,000) (41,000) 6 (1,400,000) 7 (70,000) 8 (500,000)9 (18,000) (30,000) 10 (44,000)11 (140,000)12 $ (11,390,000) $ 1,979,000 (400,000)1 $ 1,579,000