For the year ended December 31, 2007, Ajax Corporation had net income per books of $1,200,000. Included in the determination of net income were the following items:
|
Interest income on municipal bonds |
$ 40,000 |
|
Damages received from settlement of patent infringement lawsuit |
200,000 |
|
Interest paid on loan to purchase municipal bonds |
8,000 |
|
Provision for federal income tax |
524,000 |
What should Ajax report as its taxable income for 2007?
- $1,492,000
- $1,524,000
- $1,684,000
- $1,692,000