The following information for 2013 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 2013.