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Tuna Corporation reported pretax book income of $1,008,000. During the current year, the net reserve for warranties increased by $29,000. In addition, book depreciation exceeded

Tuna Corporation reported pretax book income of $1,008,000. During the current year, the net reserve for warranties increased by $29,000. In addition, book depreciation exceeded tax depreciation by $108,000. Finally, Tuna subtracted a dividends received deduction of $19,000 in computing its current-year taxable income. Book equivalent of taxable income is:

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$989,000.

$1,027,000.

$1,126,000.

$1,145,000.

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