The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed the following selected financial information for the year 2021:

$ Gross receipts 25,800,000

Cost of goods sold 21,300,000

Dividends received (less than 20%-owned) 250,000

Interest Income 150,000

Interest Expense 1,550,000

Depreciation 575,000

Other Operating Expenses 1,500,000

XYX is planning a major expansion project for the year 2022 and is in the process securing the needed financing. Financing approval is dependent upon the company averaging Net Income of at least $950,000 for the last three years. Net income for 2019 and 2020 was $875,000 and $925,000 respectively. Your boss the Vice President of Financial Operations has asked you to use the numbers above and calculate Net Income for 2021 to see if it meets or exceeds the target of $950,000.

It needs to include all available tax deductions unique to corporations including Dividends Received Deduction (DRD). The corporate tax rate must be applied to the taxable income to determine income taxes.