38. LO.9 The following information for 2021 relates to Sparrow Corporation, a calendar year, accrual method taxpayer.

Net income per books (after-tax) $205,050 Federal income tax per books 55,650 Tax-exempt interest income 4,500 MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes 7,200 Excess of capital loss over capital gains 9,400 Nondeductible meals and entertainment 5,500 Interest on loan to purchase tax-exempt bonds 1,100 Based on the above information, use Schedule M–1 of Form 1120, which is available on the IRS website, to determine Sparrow’s taxable income for 2021.