Ross Company, a manufacturer of pharmaceuticals, has pretax ordinary income of $500,000 and has just sold for $150,000 an asset purchased 2 years ago for $125,000. Using Table 1.2, calculate the tax liability for the company this year.

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TABLE 1.2 Corporate Tax Rate Schedule Tax calculation (Marginal rate X amount over bracket lower limit) Base tax Taxable income brackets 0 to $ 50,000 $ (15% × amount over 0) 75,000 $ 50,000 7,500 (25% X amount over 50,000) to 75,000 100,000 $ 13,750 (34% x amount over 75,000) to $ 22,250 $ 113,900 $ 100,000) $ 335,000) 100,000 335,000 (39% x amount over to 335,000 10,000,000 (34% X amount over to 15,000,000 $3,400,000 $10,000,000) 10,000,000 (35% x amount over to 18,333,333 $5,150,000 $15,000,000) 15,000,000 (38% x amount over to $6,416,667 + Over 18,333,333 $18,333,333) (35% X amount over