18. LO.2 Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year.

Income from services $400,000 Salaries paid to employees 70,000 Tax-exempt interest income 24,000 Dividends from a corporation in which Penguin holds a 12% interest 40,000 Short-term capital loss on the sale of stock 17,000 Estimated Federal income taxes paid 110,000 Penguin purchased 7-year MACRS property in the current year for $80,000; it did not claim any § 179 or additional first-year depreciation. The property has a 10-year ADR midpoint life. Determine Penguin’s taxable income and current E & P.