Reference no: EM133072824

Question - TGW, a calendar year corporation, reported $4,016,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information:

TGW's depreciation expense per books was $457,000, and its MACRS depreciation deduction was $382,400.

TGW capitalized $687,000 indirect expenses to manufactured inventory for book purposes and $820,000 indirect expenses to manufactured inventory for tax purposes.

TGW's cost of manufactured goods sold was $2,566,000 for book purposes and $2,656,000 for tax purposes.

Four years ago, TGW capitalized $2,304,000 goodwill when it purchased a competitor's business. This year, TGW's auditors required the corporation to write the goodwill down to $1,545,000 and record a $759,000 goodwill impairment expense.

Required - Compute TGW's taxable income.