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Question - Clark Corporation has income per books before tax of $1,500,000. In computing income per books, Clark included $7,000 interest income from tax-exempt municipal bonds and deducted $10,000 for business meals and entertainment expenses, $50,000 for depreciation expense using the straight-line method and $15,000 accrued for bad debt expense using the allowance method. It actually wrote off only $9,000 in bad debts this year and its tax depreciation expense was $80,000. What is Clark Corporation's taxable income?
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