Please examine the income statement below and use it as a basis to answer the questions on the screens that follow.

INCOME STATEMENT Bizzer, Inc. Gross Sales $ 1,840,000   Cost of Goods Sold   1,540,000   Other Income: Dividends Received     10,000   1 Interest income from:           Banks:   10,000       Tax-exempt state bonds:   5,000   Life insurance Proceeds from     Death of Corporate Officer   6,000   Bad Debt Recoveries     (No tax deduction claimed)   3,500   Expenses: Officer's Life Insurance Premiums     (Corporation is beneficiary)     9,500   Compensation of Officer   50,000   Salaries and Wages   28,000   Repairs   800   Taxes   10,000   Contributions   23,500 2 Interest Paid to Purchase     Tax-exempt Bonds   850   Depreciation   5,200 3 Loss on Securities   3,600 4 Net Income Before Tax $ 203,050   Federal Income Tax Accrued   62,225   Net Income $ 140,825    1. Dividends from 4% owned company. (Dividend Received Deduction = 70%)  2. $300 are lobby expenses; Charitable contributions are limited to $2,500  3. Tax Depreciation is computed to be $6,200  4. The $3,600 Loss is a Net Long-term Capital Loss for the year.