USE THE FOLLOWING INFORMATION FOR QUESTIONS 15, 16, 17, AND…

USE THE FOLLOWING INFORMATION FOR QUESTIONS 15, 16, 17, AND 18.Ozаrk United FC repоrts а pre-tаx bооk income of $2,000,000 in Year 1. The company also had the following book-tax differences: At the beginning of Year 1, the company purchased a machine costing $150,000 without residual value. For book (GAAP) purposes, the machine will be depreciated over 3 years using straight-line depreciation. However, for tax purposes, the company depreciates that asset at $100,000 in Year 1, $50,000 in Year 2, and $0 in Year 3.In Year 1, the company received $100,000 in cash from rent for Year 2. For book (GAAP) purposes, this amount is recorded as unearned rent revenue. However, the tax law requires Ozark United FC to recognize the rent as revenue in Year 1, when cash is received.Ozark United FC recognized $15,000 in interest revenue from their investments in municipal bonds in Year 1.The company faces a 30% tax rate in Year 1 and a 25% tax rate in all subsequent years.Part A. Calculate Ozark United FC’s taxable income for Year 1.