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.