Required information [The following information applies to the questions displayed below) XYZ is a calendar-year corporation that began business on January 1, 2020. 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 corp Income statement For current year Revenue from sales Cost of Goods Sold Gross profit Book Income $ 40,000,000 (27,000,000) $ 15,000,000 Other income Income from Investment in corporate Stock Interest income Capital gains (losses) Gain or loss from disposition of fixed assets Miscellaneous Income Gross Inc Expenses: Compensation Stock option compensation Advertising Repairs and Maintenance Rent Dad Debt pense Depreciation Warranty expenses Charitable nations Meus GOOIT malet Organizational expenditures otheses Total expenses Thone Province Inca 300,0001 20.0002 (4,000) 1.000 50,000 5 11,360,000 (7.500,000,4 (200.000 (1,350,000) (75.000) (22,000) (41,000, (1,400,000, (70,000 (500,000, (18.000 030,000, 10 (44,000 11 140,000 12 31,9792000 (400.000, $1.579.000 3 Prev 3 Ne Net Income after taxes DIE 1. XYZ owns 30 percent of the outstanding Hobble Corp. (HC) stock. Hobble Corp. 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 HCS earnings for the year. HC also distributed a $200,000 duidend to XYZ 2. Of 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 3. This gain is from equipment that XYZ purchased in February and sold in December (.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 option compensation that was expensed during the year (recipients are officers). 6.XYZ actually wrote off $27.000 of its accounts receivable as uncollectible. 7. Tax depreciation was $1.900,000. 8. In the current year, XYZ did not make any actual payments on warranties it provided to customers 9. XYZ made $500,000 of cash contributions to qualified charities during the year. 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 goodwill as impaired. 11. XYZ 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 items with book-tax differences 13. This is an estimated tax provision (federal tax expense) for the year. Assume that XYZ is not subject to state Income taxes Estimated tax Information: XYZ made four equal estimated tax payments totaling $360,000 ($90.000 per quarter. For purposes of asumated tax Habilities, assume XYZ was in existence 2019 and that in 2019 it reported a tax liability of $500.000. During 2020. XYZ determined its taxable income at the end of each of the four quarters as follows: Quarter-end First Second Third Cumulative taxable Inc (LOS) $ 400,000 31,100,000 $1,400.000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Do not found intermediate calculations. Round your answers to the nearest dollar amount) a. Compute XYZ's taxable income Pie