RR Inc. operates an active business. Financial statements for the year ended December 31, 20X1 report a net income before taxes of $300,000. The following additional information is provided: 1. RR's net income is summarized as follows: Income from business operations $280,000 Gain on sale of capital assets 15.000 Interest on a bond investment _5.D_0_Q $m 2. During the year RR completed construction of a new warehouse building and its cost of $600,000 was added to the balance sheet. The cost consists of the following: Building construction $500,000 3. Heating and cooling systems 80.000 Landscaping of grounds 20,000 $M 3. The balance sheet of RR includes an amount for goodwill acquired from a previous business acquisition. During the year, a goodwill impairment loss of $30,000 was deducted from the income from business operations. 4. Legal expenses include $2,000 for drafting the mortgage document for the new warehouse, $1,000 to investigate a zoning limitation on the new warehouse site, and $5,000 for the audit fee. 5. A management bonus of $60,000 was announced and accrued in September 20X1. The bonus was paid in two equal installments on January 31 and April 30 of the following year. 6. The income statement for the year ended December 31, 20X1 includes the following items