$xYZ$ is a calendar$-$year corporation that began business on January $1,2023.$ For the year, it reported the following information in its current$-$year audited income statement. Notes with important tax information are provided below. Use Exhibit $16-6.$

XYZ owns $30$ $ of the outstanding Hobble Corporation $($HC$)$ stack. Hobble Corporation reported $$1,000,000$ of income for the year, XYZ accounted for its investment in HC under the equity method, and it recorded its pro rata share of HC$\text{'}$s earnings for the year. $HC$ also distributed a $$200\mathrm{.}000$ dividend to XYZ$.$ For tax purposes, HC reports the actual dividend recelved as income, not the pro rata share of HCls earnings.

Of the $$24,800$ interest income, $$6,200$ was from a Cilty of Seattle bond, $$8\mathrm{.}200$ was from a Tacoma City bond, $$7,200$ was from a fully taxable corporate bond, and the remaining $$3,200$ was from a money market account.

This gain is from equipment that $xY2$ purchased in February and sold in December fie, it does not qualify as $$1231$ gain$).$

This includes total officer compensation of $$2,500,000($no one officer recelved more than $$1,000,000$ compensation$).$

This amount is the portion of incentive stock option compensation that was expensed during the year frecipients are officers$).$

$x72$ actually wrote off $$30000$ of its accounts recelvable as uncollectible

Tax depreciation was $$2,050,000$

In the current year, XYZ did not make any actual payments on warranties it provided to customers

$xY2$ made $$500\mathrm{.}000$ of cash contributions to charities during the year

On July $1$ of this year, $xYZ$ acquired the assets of another business. In the process, it acquired $$318,000$ of goodwill. At the end of the year, $xYZ$ wrote off $$33,000$ of the goodwill as impaired.

XYZ expensed all of its organizational expenditures for book purposes, XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes.

The other expenses do not contain any items, with book$-$tax differences.

This is an estimated tax provision $($federal tax expense$)$ for the year. Assume that $xYZ$ is not subject to state income taxes.

Estimated tax information:

XVZ made four equal estimated tax payments totaling $$400,000($ $$100,000$ per quarter$).$ For purposes of estimated tax liabilities, assume XYZ was in existence in $2022$ and that in $2022$ it reported a tax liability of $$556\mathrm{.}000.$ During $2023,$ XYZ determined ins taxable income at the end of each of the first three quarters as follows:

Finally assume that $xVZ$ is not a targe corporation for purposes of estimated tax calculations.

$\backslash$table$[[$Tou Year NOL Origlested,Cambinks,Campuater$],[,,],[,,],[$Reqiasimy aner $2030,$puit alikuenel.,$]]$

a$.$ Compute $xYZ\text{'}$s taxable income.

b$.$ Compute XYZ$\text{'}$s income tax liability.