A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $6,000,000. It completed installation of assembly equipment worth $1,500,000 on December 3st. The plant began operation on January 1st. The company had a gross income of $8,500,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,280,000. The depreciation expenses for capital expenditures amounted to $456,000.
(a) Compute the taxable income of this company.
(b) How much will the company pay in federal income taxes for the year?