This Year, Zulou Industries Capitalized $552,000 Indirect Costs to Inventory

Multiple Choice

This year, Zulou Industries capitalized $552,000 indirect costs to inventory for book purposes and $591,600 indirect cost to inventory under unicap. Zulou's cost of goods sold for book purposes was $2,458,000, and its cost of goods sold for tax purposes was $2,707,000. If Zulou has no other book/tax differences, and its book income is $5,000,000, compute Zulou's taxable income.

A) $4,711,400
B) $4,751,000
C) $4,790,600
D) $5,288,600