The following information for 2009 relates to Sparrow Corporation, a calendar year, accrual 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 straight-line depreciation used for financial statement purposes 8,000
Charitable contribution in excess of taxable income limitation 7,000
Premiums paid on life insurance policy on the president (Sparrow is beneficiary of policy) 5,000
Interest on loan to purchase tax-exempt bonds 3,000
Based on the above information, used schedule M-1 of form 1120, which is available on the IRS web site, to determine Sparrow's taxable income for 2009.