Slumar,an Accrual Basis,calendar Year Corporation,reported $7,289,200 Net Income Before Tax

question 34

Essay

Slumar,an accrual basis,calendar year corporation,reported $7,289,200 net income before tax on its financial statement prepared in accordance with GAAP.The corporate records reveal the following information.
The allowance for bad debts on January 1 was $104,700.Write-offs for the year totaled $113,228,and the addition to the allowance for the year was $105,000.
Slumar incurred $22,000 of entertainment costs and $32,000 of business meals.
At its December 16 meeting,Slumar's board of directors authorized a $100,000 salary bonus for the corporation's CEO.Slumar paid the bonus to the CEO on January 4.The CEO owns 62% of Slumar's outstanding stock.
Slumar was incorporated last year.On its first tax return,it reported a $334,712 net operating loss.
Compute Slumar's taxable income.

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