Compute current E & P for Sparrow Corporation (a calendar year, accrual basis taxpayer). Sparrow reported the following transactions during 2019, its second year of operation. 

Taxable income.....................................................$330,000 

Federal income tax liability paid..............................69,300 

Tax-exempt interest income......................................5,000 

Business meal expenses (total).................................3,000 

Premiums paid on key employee life insurance.....3,500 

Increase in cash surrender value attributable to life insurance premiums .......700 

Proceeds from key employee life insurance policy.............130,000 

Cash surrender value of life insurance policy at distribution......20,000 

Excess of capital losses over capital gains..............................$ 13,000 

MACRS deduction..........................................................................26,000 

Straight-line depreciation using ADS lives.................................16,000 

Section 179 expense elected during 2018.................................25,000 

Dividends received from domestic corporations (less than 20% owned) ..........35,000 

• Sparrow uses the LIFO inventory method, and its LIFO recapture amount increased by $10,000 during 2019.
• Sparrow sold some property on installments during 2018. The property was sold for $40,000 and had an adjusted basis then of $32,000. During 2019, Sparrow received a $15,000 payment on the installment sale.