Question: In 2015 Center Corporation, a calendar year, accrual basis C corporation, has pre-tax financial (book) income of $1,500,000. In computing its book income, Center included $7,000 of interest income from tax-exempt municipal bonds and expenses $10,000 of business meals and entertainment expenses. In addition, Center expensed $50,000 depreciation using straight-line method and expensed $15,000 of bad debts in computing its book income. Center Corporation actually wrote off $9,000 of bad debts in 2015 and its tax depreciation deduction was $80,000. What is Center Corporations 2015 federal taxable income?