The following information has been obtained for Blue Corporation 1. Prior to 2017, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,747,000 in 2017 and $1,434,000 in 2018. 3. On January 1, 2017, equipment costing $1,304,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) 4. Interest of $54,000 was earned on tax-exempt municipal obligations in 2018. 5. Included in 2018 pretax financial income is a gain on discontinued operations of $195,000, which is fully taxable. 6. The tax rate is 35% for all periods 7. Taxable income is expected in all future years. Compute taxable income and income taxes payable for 2018. Taxable income Income taxes payable $