Required Information [The following information applles 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 Exhiblt 16-6. 1XYZ 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 equilty 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 recelved as Income, not the pro rata share of HC's earnings. 2Ofthe$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 (I.e., It does not quallfy as $1231 galn). 4 This includes total officer compensation of $2,500,000 (no one officer recelved more than $1,000,000 compensation). 5 This amount is the portion of Incentlve stock option compensation that was expensed during the year (reciplents are officers). 6XYZ actually wrote off $27,000 of Its accounts recelvable as uncollectlble. 7 Tax depreclation was $1,900,000. 8 In the current year, XYZ did not make any actual payments on warrantles It provided to customers. 9XYZ made $500,000 of cash contributions to charltles 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 Impalred. 10 XYZ expensed all of Its organizational expenditures for book purposes. XYZ expensed the maxlmum 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 estlmated tax payments totaling $360,000 ( $90,000 per quarter). For purposes of estimated tax llabilitles, assume XYZ was in existence In 2022 and that In 2022 It reported a tax llability of $500,000. During 2023, XYZ determined its taxable Income at the end of each of the first three quarters as follows: Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round Intermedlate calculatlons. Round your answers to the nearest dollar amount. c. Complete XYZ's Schedule M-1. Note: Enter all amounts as positlve numbers