The Loquat Corporation has book net income of $50,000 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return.

Federal income tax expense$ 7,500

Depreciation deducted on the books which is not

deductible for tax purposes10,000

Deduction for 50 percent of meals expense which

is not allowed for tax purposes 5,500

Deduction for a tax penalty not allowed for tax purposes 2,000

Tax-exempt interest income included in book income

but not in tax income 4,200

Calculate Loquat Corporation's taxable income for the current year based on the

information given. Show your calculations.