Corporate Taxes

A mail order computer company sells personal computers and peripherals. The company leased showroom space and a warehouse for $20,000 a year and installed $290,000 worth of inventory checking and packaging equipment. The allowed depreciation expense for this capital expenditure ($290,000) amounted to $58,000 using the category of 5 year MACRS. The store was completed and operations began on January 1. The company had a gross income of $1,250,000 for the calendar year. Supplies and all operating expenses, other than the lease expense, were itemized as follows:

Merchandise sold in the year$600,000Employee salaries and benefits150,000Other supplies and expenses90,000 $840,000

Compute the taxable income for this company. How much will the company pay in federal income taxes for the year?