Your client is Empire Records Corporation, an accrual basis, calendar year C

Corporation. In $2023,$ their financial statement net income $($book income$)$ was

$$900,000.$ They have the following items of income and expense included in their

financial statement net income for $2023$:

$$Empire Records made a charitable contribution of $$140,000$ in cash to The Trevor

Project, a qualifying charity. All $$140,000$ of this charitable contribution is included

in book income. Modified taxable income for the charitable contribution deduction

is $$784,000.$ There is no charitable contribution carryforward from prior years.

$$Empire Records received $$20,000$ of dividends from a domestic dividend$-$paying

corporation. Empire Records owns $75\%$ of this entity. All $$20,000$ of dividends are

included in book income.

$$Empire Records had a net capital loss of $$4,000$ in $2022.$ In $2023,$ they sold one

asset and recognized a capital gain of $$3,000.$ $$3,000$ of capital gain is included in

book income.

$$Empire Records has an NOL carryforward from $2022$ of $$800,000.$ None of this

NOL carryforward is included in book income.

Your task is to calculate Empire Records$$ taxable income $($after NOL deduction$)$ for

$2023.$

Hint: First calculate taxable income before the NOL deduction, then apply the NOL

deduction. For this homework, your task is to calculate $2023$ taxable income for Empire

Records Corporation. To do this, calculate the book$-$tax difference related to

the items above and add $($unfavorable BTD$)$ or subtract $($favorable BTD$)$ from

book income. Not every item above will have a book$-$tax difference. Also,

please label each BTD as permanent or temporary.