XYZ is a calendar-year corporation that began business on January 1, 2021. 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.

A.compute XYZs taxable income

b.compute xyz income tax liability

c.calculate xyz schedule

d.complete xyz form 1120 page 1

XYZ corporation Income statement For current year	Book Income
Revenue from sales	$ 40,000,000
Cost of Goods Sold	(27,000,000)
Gross profit	$ 13,000,000
Other income:
Income from investment in corporate stock	300,0001
Interest income	20,0002
Capital gains (losses)	(4,000)
Gain or loss from disposition of fixed assets	3,0003
Miscellaneous income	50,000
Gross Income	$ 13,369,000
Expenses:
Compensation	(7,500,000)4
Stock option compensation	(200,000)5
Advertising	(1,350,000)
Repairs and Maintenance	(75,000)
Rent	(22,000)
Bad Debt expense	(41,000)6
Depreciation	(1,400,000)7
Warranty expenses	(70,000)8
Charitable donations	(500,000)9
Meals (all at restaurants)	(18,000)
Goodwill impairment	(30,000)10
Organizational expenditures	(44,000)11
Other expenses	(140,000)12
Total expenses	$ (11,390,000)
Income before taxes	$ 1,979,000
Provision for income taxes	(400,000)13
Net Income after taxes	$ 1,579,000