The federal income tax expense for book purposes is $100,000.

Compute Myer Corp.'s current year's taxable income given the following information relating to its year 1 activities 1. Gross profit from inventory sales of $750,000 (no book-tax differences Dividends Myer received from 50% owned corporation of $100,000 (assume this is also Myer's pro rata share of the distributing corporations earnings) Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $300,000 (no book-tax differences) NOL carryover from prior year of $50,000 Cash charitable contribution of $120,000 . . e