The following information for 2016 relates to Sparrow Corporation, a calendar year, accrual method taxpayer.
Net income per books (after-tax) ........................................................ $174,100
Federal income tax per books ............................................................ 86,600
Tax-exempt interest income .............................................................. 4,500
MACRS depreciation in excess of straight-line depreciation used for
financial accounting 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 2016.