1. Gorm Inc., a cash-method C corporation, had taxable income of $250,000 for its initial taxable year (year 1). A review of company records revealed the following information:
   1. Gorms estimated federal income tax payments made during the year totaled $40,000.
   2. The current-year tax depreciation expense on furniture and fixtures, the only asset owned by Gorm, was $12,000. If Gorm had used the alternative depreciation system (straight-line method), depreciation expense deducted would have been $5,000.
   3. Gorm had tax-exempt interest income of $21,000 that was not been included in taxable income.
   4. Gorm had $9,000 of organizational expense amortization that was deducted from taxable income.
   5. Gorm reported a $25,000 gain on an installment sale of a non-inventory item in taxable income. The total gain on the sale was $100,000.
   6. Gorm received a $4,000 dividend from X Corporation, of which Gorm owns 15% of the shares. The dividend income and associated dividend received deduction were included in taxable income.

Instructions:

Compute Gorm Inc.s current earnings and profits (E&P) at the close of the current year

(year 1).