X Co. has the following items of possible tax significance in 2006. Determine its current earnings and profits for 2006

• Book pre-tax income of $1,000,000
• Book tax expense of $340,000
• Taxable income of $400,000
• Federal taxes of $125,000
• Interest from municipal bonds of $100,000
• Premiums for officers term life insurance of 25,000 (X is the beneficiary)
• X was allowed depreciation of $40,000 on an apartment building acquired in 1998. The buildings original cost was $1,000,000
• X exchanged land used in its business for another parcel of land also to be used in Xs business. The land had a FMV of $1,000,000 and a basis of $500,00.
• X was able to currently utilize a net operating loss carryover of $100,000.