Francis Corporation had taxable income of $260,000 for its initial taxable year. A review of company records revealed the following information: 1. The current-year tax depreciation expense on furniture and fixtures, the only asset owned by Francis Corporation, was $10,000. If Francis had used the alternative depreciation system (straight-line method), depreciation expense deducted would have been $5,000 2. Francis had tax-exempt interest income of $22,000 that has not been included in taxable income. 3. Francis paid dividends of $16,000 that were not deducted. 4. Francis had $20,000 of returns and allowances that were deducted on the return. 5. Francis reported a $20,000 gain on an installment sale of a noninventory item. The total gain on the sale was $100,000 Earnings and profits for Francis Corporation at the close of the current year were $351.000 $346,000 $271.000 $266,000