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

$MZ$ owns $30$ s of the outstanding Hobble Corporation $($HC$)$ stock, Hobble Corporation reported $$1\mathrm{.}000\mathrm{.}000$ of income for the year. $xYZ$ accounted for its investment in HC under the equity method, and it recorded its pro rata share of HCS earnings for the year. HC also distributed a $$200000$ dividend to XYZ$.$ For tax purposes. HC reports the actual dividend recelved as income, not the pro rata share of $HC$ s earnings

$2$ Of the $$24,800$ interest income, $$6,200$ was from a City of Seatte bond, $$8,200$ was from a Tacoma City bond, $$7,200$ was from a fily taxable corporate bond, and the remaining $$3\mathrm{.}200$ was from a money market account.

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

This includes total officer compensation of $$2\mathrm{.}500000($no one officer recelved more than $$1,000,000$ compensation$).$

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

XY$2$ actwally wrote off $$30000$ of its accounts recelvable as uncollectible.

Tax depreciation was $$2\mathrm{.}050,000$

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

XYZ made $$500000$ of cash contributions to charities during the year

On Jhly $1$ of this year XYZ acquired the assets of another business. In the process, it acquired $$318,000$ of goodwill At the end of the year $xYZ$ wrote of $$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 yeac. Assume that XYZ is not subject to state income taves

Estimated tax information:

XYZ made four equal estimated tax payments totaling $$400,000($ $$100,000$ per quarter$).$ For purposes of estimated tax

liabliftes, assume XYZ was in existence in $2022$ and that in $2022$ it reported a tax liability of $$556\mathrm{.}000.$ During $2023,$ XYZ determined its tarable income at the end of each of the first three quarters as fotlows:

$\backslash$table$[[$Quarter$-$end,$\backslash$table$[[$Cunciative taras$)$le$],[$incose $($lots$)]]],[$First$,5459,069],[$Second$,1,130,000$