Boilermaker Inc. reported taxable income of $870,000 this year and paid federal income taxes of $295,800. Not included in the companys computation of taxable income is tax-exempt income of $37,000, disallowed meals and entertainment expenses of $33,250, and disallowed expenses related to the tax- exempt income of $3,200. Boilermaker deducted depreciation of $136,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $64,500. Compute the companys current E&P

Taxable income
Choose Add or Subtract:

Tax-exempt interest
Excess of regular tax deprecation over E & P depreciation

.

Subtract:
Federal income taxes
Disallowed portion of meals and entertainment
Disallowed expenses related to tax-exempt income
Current E & P