Required Information Comprehensive Problem 13-83 (LO 13-1, LO 13-2, LO 13-3) (Algo) [The following information applies to the questions displayed below] XYZ is a calendar-year corporation that began business on January 1, 2024. For the year, It reported the following Information In its current-year audited income statement. Notes with Important tax Information are provided below. XYZ corporation Income statement For current year Book Income Revenue from sales $ 44, 400,090 cost of Goods Sold (29,970, 080 Gross profit $ 14, 430,090 Other income: Income from investment in corporate stock 300, egg1 Interest income 37, 6802 capital gains (losses) (4, 080) Gain or loss from disposition of fixed assets 3, Bee Miscellaneous income 50, 090 Gross Income $ 14, 816, 606 Expenses : compensation (7,544,808)4 Stock option compensation (244, 080)5 Advertising (1, 394, 080 Repairs and Maintenance (97, 080 Rent expense (44, 080 Bad Debt expense (63, 808) 6 Depreciation (1, 950, 080) Warranty expenses (114, 808) 8 charitable donations (508, 808)9 Meals (40, 408) Goodwill impairment (41, Bee) 10 Organizational expenditures (47, 800) 11 other expenses (184,800) 12 Total expenses $ (12, 262, 408 Income before taxes $ 2, 554, 200 Provision for income taxes (400, 820) 13 Net Income after taxes $ 2, 154, 200 1XYZ owns 30% of the outstanding Hobble Corporation (HC) stock. Hobble Corporation reported $1,000,000 of Income for the year. XYZ accounted for its Investment in HC under the equity method, and it recorded its pro rata share of HC's earnings for the year. HC also distributed a $200,000 dividend to XYZ. For tax purposes, XYZ reports the actual dividend"XYZ owns 30% of the outstanding Hobble Corporation (HC) stock. Hobble Corporation reported $1,000,000 of Income for the year. XYZ accounted for Its Investment in HC under the equity method, and it recorded its pro rata share of HC's earnings for the year. HC also distributed a $200,000 dividend to XYZ. For tax purposes, XYZ reports the actual dividend received as income, not the pro rata share of HC's earnings of the $37,600 Interest income, $9,400 was from a City of Seattle bond, $11,400 was from a Tacoma City bond, $10,400 was from a fully taxable corporate bond, and the remaining $6,400 was from a money market account. 3This gain is from equipment that XYZ purchased in February and sold in December (I.e., It does not qualify as $1231 gain). 4This Includes total officer compensation of $2,500,000 (no one officer received more than $1,000,000 compensation). "This amount is the portion of incentive stock option compensation that was expensed during the year (recipients are officers). "XYZ actually wrote off $38,000 of its accounts receivable as uncollectible. 7Tax depreciation was $2,450,000. 8in the current year, XYZ did not make any actual payments on warranties It provided to customers. 9XYZ made $500,000 of cash contributions to charities during the year 10on July 1 of this year, XYZ acquired the assets of another business. In the process, It acquired $366,000 of goodwill. At the end of the year, XYZ wrote off $41,000 of the goodwill as Impaired. 1XYZ expensed all of its organizational expenditures for book purposes. XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes. 12The other expenses do not contain any items with book-tax differences. "This Is an estimated tax provision (federal tax expense) for the year. Assume that XYZ is not subject to state Income taxes. Estimated tax Information: XYZ made four equal estimated tax payments totaling $480,000 ($120,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was In existence in 2023 and that In 2023 it reported a tax liability of $668,000. During 2024, XYZ determined its taxable Income at the end of each of the first three quarters as follows: Cumulative taxable Quarter - end income (10ss) First $ 510, 080 second $ 1, 310, 680 Third $ 1, 870, 080 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round Intermediate calculations. Round your answers to the nearest dollar amount. Comprehensive Problem 13-83 Part b (Algo) b. Compute XYZ's Income tax liability. * Answer is complete but not entirely correct. Tax liability 493,887