TGW, a calendar year corporation, reported $3,992,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporations records reveal the following information:

• TGWs depreciation expense per books was $455,000, and its MACRS depreciation deduction was $381,400.
• TGW capitalized $685,000 indirect expenses to manufactured inventory for book purposes and $816,000 indirect expenses to manufactured inventory for tax purposes.
• TGWs cost of manufactured goods sold was $2,564,000 for book purposes and $2,652,000 for tax purposes.
• Four years ago, TGW capitalized $2,292,000 goodwill when it purchased a competitors business. This year, TGWs auditors required the corporation to write the goodwill down to $1,535,000 and record a $757,000 goodwill impairment expense.

Required: Part A

Compute TGWs taxable income.

Note: Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.