“A consumer electronics company was formed to develop cell phones that run on or recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $6,000,000. It completed installation of assembly equipment worth $1,800,000 on December 31st. The plant began operation on January 1st. The company had a gross income of $8,900,000 for the calendar year. Manufacturing costs and all operating expenses were $2,000,000. The depreciation amounted to $413,000. What is the taxable income for this company?”
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