The following information for 2012 relates to Sparrow Corporation, a calendar year, accrual method taxpayer.
Net income per books (after tax) |
$174,100 |
Federal income tax expense per books |
86,600 |
Tax exempt interest income |
4,500 |
MACRS depreciation in excess of straight line depreciation used for |
|
financial statement purposes |
7,200 |
Excess of capital loss over capital gains |
9,400 |
Nondeductible meals and entertainment |
5,500 |
Interest on loan to purchase tax exempt bonds |
1,100 |
Based on the above information, use Schedule M–1 of Form 1120, which is available on the IRS website, to determine Sparrow’s taxable income for 2012.