TSK Corp. operates a document storage company. Scott, thepresident owns 40% of the stock. In 2018, TSK Corp. had Book NetIncome of $800,000.The following items were included in Book NetIncome: Dividend income 20,000 Interest income 10,000 Long termcapital gain 8,000 Federal tax expense 213,000 Further discussionwith Scott revealed the following additional information: Thecorporation is a calendar year end and uses the accrual method ofaccounting. The dividends were from a domestic corporation and TSKowns 20 % of this stock. Interest income is from US Treasury Bonds.Book expenses included a $5000 penalty for late payment of Federaltaxes, and $12,000 premiums on officer life insurance Book expensesincluded an estimated bad debt expense of $40,000. Actual bad debtwrite offs during the year were $19000. Tax depreciation exceedsbook depreciation by $14,000. The corporation has a long termcapital loss carryover of $10,000 from 2016, On July 1, 2018 TSKCorporation paid a distribution of $120,000 to its shareholders. AtDecember 31, 2017, the corporation had an accumulated deficit inearnings and profits of $ 42,000. Assume a 21% tax rate. Based onthe above information compute TSK’s 2018 earnings and profits as ofDecember 31, 2019.