A manufacturing firm is considering purchasing a new machine for $228,000. The firm plans on borrowing $114,000 to be paid off in equal payments in 3 years. The interest rate on the loan is 4.1%. The machine is classified as 7-years MACRS. Using the machine will save $46,000 in labor costs each year. The annual O&M costs for the machine are $9,000. The firm plans on using the machine for 5 years after which it will be salvaged for $102,600. Calculate the taxable income (i.e., income before taxes) for the income statement for year 1 if the firm purchases the machine.