Question 2 Loon, Incorporated reported taxable income of $710,000 in 203 and paid federal income taxes of $213,000. Not included in the company's computation of taxable income is tax-exempt interest of $41,000, disallowed meals and entertainment expenses of $20,500, and disallowed expenses related to the tax-exempt income of $5,100. Loon deducted depreciation of $255,000 on its tax return. Under the alternative (E\&P) depreciation method, the deduction would have been $91,000. Compute the company's current E\&P for 203