The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer:
Net income per books (after-tax) .............................................................................................$205,050
Federal income tax per books ......................................................................................................55,650
Tax-exempt interest income ...........................................................................................................4,500
MACRS depreciation in excess of straight-line depreciation used for financial 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 2019.