Facts Last Minute Luggage, Inc. (LML) is a new client for calendar year 2020. LML began business in the previous year, calendar year 2019. LML's business operations are centered on packaging and distributing TSA approved locks, gifts, beverages, gels, and lotions to airports. Yesterday, we were out in the field at the client's headquarters and gathered the following information for calendar year 2020: Meal costs were $250,000 Book depreciation was $4,000,000 Lobbying costs were $50,000 We also noted in the GL and trial balance the following year-end balances: Calendar year 2020 income before taxes is $30 million Allowance for bad debts is $475,000 (2019 YE balance was $400,000) Sales returns reserve is $690,000 (2019 YE balance was $540,000) We interviewed the client's CFO and he provided us with a workpaper containing the following tax information: Tax depreciation for the year is estimated to be $7,500,000 He also provided a workpaper prepared by an outside consultant showing an estimated $400,000 of R