The Loquat Corporation has book net income of $50,000 for the current year. Included in this figure are the following items, which are reported on the corporation’s Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return. 

Federal income tax expense...................$ 7,500 

Depreciation deducted on the books which is not deductible for tax purposes...................10,000 

Deduction for 50 percent of meals expense which is not allowed for tax purposes...................5,500 

Deduction for a tax penalty not allowed for tax purposes ...................2,000 

Tax-exempt interest income included in book income but not in tax income...................4,200

Calculate Loquat Corporation’s taxable income for the current year based on the information given. Show your calculations.