The following income and expense accounts appeared in the accounting records of Rocket Corporation, an accrual basis tax

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The following income and expense accounts appeared in the
accounting records of Rocket Corporation, an accrual basis
taxpayer, for the calendar year 2020.
Book Income
Account Title
Debit
Credit
Net
Sales
$ 3,000,000
Dividends
8,000 (1)
Interest
18,000 (2)
Gain on sale of
stock
5,000 (3)
Key-person life insurance
proceeds
100,000
Cost of goods
sold
$ 2,000,000
Salaries and
wages
500,000
Bad
debts
13,000 (4)
Payroll
taxes

62,000
Interest
expense
12,000 (5)
Charitable
contributions
50,000 (6)
Depreciation
60,000 (7)
Other
expenses
40,000 (8)
Federal income
taxes
96,000
Net
income

298,000
-
0 -
Total
$
3,131,000
$ 3,131,000
The following additional information applies:
Required: