The following information for 2009 relates to Sparrow Corp a calander year accural method taxpayer.
Net income per books after-tax $134,700
Federal income tax expense per books 59,300
Tax exempt interest income 6,000
MACRS depreciation in excess of straigt-line depreciation used for financial statement purposes 8000
Charitable contribution in excess of taxable income limiation 7000
Premiums paid on life insurance policy on the president (Sparrow is beneficiary) 5000
Interest on loan to purchase tax-exempt bonds 3000
Based on the above information use Schedule M-1 of Form 1120which is available on the IRS web site to determine Sparrow's taxable income for 2009.