$\backslash$table$[[$Big Dogs Inc Stmt FYE $20$xx$,$Adjustments,Tax Return$],[\backslash$table$[[$Revenue from Sales$]],$$$20,000,000,,$$$19,900,000],[$Cost of Goods Sold,$-$$$13,500,000,,-$$$13,500,000],[$Gross Profit,$$6,500,000,,$$$6,400,000],[$Interest Income,$$20\mathrm{.}000,-$$$20\mathrm{.}000,$o$],[$Misc Income,$$40,000,,$$$40\mathrm{.}000],[$Gross Income,$$6,560,000,,$$$6,440,000],[,,,],[$Compensation$,-$$$3,000,000,,-$$$3,000,000],[$Advertising$,-$$$800,000,$$$100,000,-$$$700,000],[$Repairs and Maintenance,$-$$$75,000,,-$$$75,000],[$Rent$,-$$$20,000,,-$$$20,000],[$Bad Debt Expense,$-$$$20,000,-$$$30,000,-$$$50,000],[$Depreciation$,-$$$700,000,$$$600,000,-$$$100,000],[$Warranty Exp,$-$$$35,000,$$$25,000,-$$$10,000],[$Other Expenses,$-$$$110,000,,-$$$110,000],[$Inc Before Tax,$$1,800,000,,$$$2,375,000],[$Tax Exp $(21\%),-$$$373,800,,-$$$498,750],[$Net Income,$$1,426,200,,$$$1,876,250]]$ Based on the information above, determine the taxable income for Big Dogs and their tax payable.

Assuming Big Dog had a net DTL last year did it go up or down this year?

Tax Pay

Tax Exp

DTL went down

$*$Unearned Revenue decreased this year by $$100,000$

Interest Income was from State of NE bonds

$*$Big Dog performed $$10,000$ in warranty work this year

$*$MACRS cost recovery this year was $$100,000$

$*$A large customer went bankrupt this year and had an AR balance of $$50,000$

$*$Advertising included $$100,000$ that was prepaid last year and is non$-$recurring

Based on the information above, determine the taxable income for Big Dogs and their tax payable.

Assuming Big Dog had a net DTL last year did it go up or down this year?

Tax Pay

Tax Exp

DTL went down

$$498,750-$$$373,800=$$$124,950$