ABC is a sole proprietorship owned by Clark. The company’s records show the following:

Sales Revenue                                                                                  275,000

Interest on State of Kansas bonds                                                     5,000

Operating Expenses                                                                       145,000

Depreciation – book purposes                                                         17,000

Depreciation – tax purposes                                                              22,000

Loss on sale of truck to Clark’s granddaughter                               4,000

Fines to the U.S. govt. for violation of emission standards          15,000                              

Compute ABC’s net income per books before tax.

Compute ABC’s taxable income.