$7-18.$ A corporation in $2017$ expects a gross income

of $$500,000,$ total operating expenses of $$400,000,$

and capital investments of $$20,000.$ In addition the

corporation is able to declare $$60,000$ of depreciation

charges for the year. What is the expected taxable income

and total federal income taxes owed for the year $2017?$

$(7\mathrm{.}7)$