C:4-58 Several years ago, Brian formed Sigma Corporation, a retail company. Sigma uses the accrual method of accounting. In the current year, the corporation reported the following items:

Gross profit $290,000 Long-term capital gain 30,000 Tax-exempt interest received 7,000 Salary paid to Brian 80,000 Payroll tax on Brian's salary (Sigma's share) 6,120 Depreciation 25,000 ($21,000 for E&P purposes) Other operating expenses 89,000 Dividend distribution to Brian 60,000