XYZ corporation has the following transactions for the year ending December 31, 2016:

Sales $ 20,000,000 COGS 2,500,000 Rent expense 1,000,000 Depreciation 1,200,000 Dividends income from a 19% owned subsidiary 200,000 In addition, during 2016, XYZ made the following contributions to qualified organizations:

FMV Adjusted basis Cash 300,000 300,000 Inventory 1,200,000 400,000 Bed sheets to a local hospital (the hospital will use the sheets) 700,000 650,000 Calculate taxable income for XYZ for the year.