CramerCorporation, a calendar year, accrual basis corporation, reported $1.85 million of net income after tax on its 2019 financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information:

• Cramer's federal income tax expense per books was $217,000.
• Cramer's book income included $27,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $12,500 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest.
• Cramer recognized $27,000 of capital losses this year and no capital gains.
• Cramer recorded $16,600 of book expense for meals and $18,500 of book expense for entertainment costs.
• Cramer's depreciation expense for book purposes totaled $417,000. MACRS depreciation was $475,000.

1. Compute Cramer's federal taxable income and regular tax liability.