Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year.

Income from services ............... $400,000

Salaries paid to employees ............. 70,000

Tax-exempt interest income .............. 24,000

Dividends from a corporation in which

Penguin holds a 12% interest ........... 40,000

Short-term capital loss on the sale of stock ........ 17,000

Estimated Federal income taxes paid ......... 110,000

Penguin purchased seven-year MACRS property in the current year for $80,000.

No § 179 election was made. The property has a 10-year ADR midpoint life. Determine Penguin’s taxable income and current E & P.