Problem: For 2011, Tar Heel Inc. has pretax accounting income of $3 million. Among the revenues and expenses making up Tar Heel's pretax accounting income are: Depreciation expense $300,000 Salary and wage expense 400,000 Maintenance expense 123,000 Goodwill impairment 500,000 Tax-exempt interest on municipal bonds 15,000 Tar Heel's depreciation for tax purposes was $380,000 for 2011. Tar Heel received no dividends during the year, but paid $30,000 in dividends during the year. What is Tar Heel's 2011 taxable income?