K Corp. operates a company which is Trevor the president that owns 40% of the stock. In 2017, K Corp. had Book Net Income of $700,000.The following items were included in Book Net Income:

Dividend income 20,000

Interest income 10,000

Long term capital gain 8,000

Federal tax expense 230,000

The corporation is a calendar year end and uses the accrual method of accounting.

The dividends were from a domestic corporation and K owns 25% of this stock.

Interest income is from the State of New Jersey.

Book expenses included a $4000 penalty for late payment of Federal taxes, and

$13,000 premiums on officer life insurance

Book expenses included an estimated bad debt expense of $22,000. Actual bad

debt write offs during the year were $8000.

Tax depreciation exceeds book depreciation by $14,000.

The corporation has a long term capital loss carryover of $12000 from 2015,

On March 1, 2017 K Corporation paid a distribution of $100,000 to its

shareholders. At December 31, 2016, the corporation had earnings and profits of $

420,000.

Assume a 34% tax rate.

I'm confused where the federal tax expense provided goes. Is it part of taxable income, or do I add it into calculating E&P?