34.   LO.2 Sparrow Corporation (a calendar year, accrual basis taxpayer) had the follow- ing transactions in 2015, its second year of operation.

Taxable income	$330,000
Federal income tax liability  paid	112,000
Tax-exempt  interest income	5,000
Meals and entertainment expenses  (total)	3,000
Premiums paid on key employee life   insurance	3,500

Increase in cash surrender value attributable to life   insurance premiums                                 $          700

Proceeds from key employee life insurance   policy	130,000
Cash surrender value of life insurance policy at   distribution	20,000
Excess of capital losses over capital   gains	13,000
MACRS deduction	26,000
Straight-line depreciation using ADS lives	16,000
Section 179 expense elected during   2014	25,000
Dividends received from domestic corporations (less than 20% owned)	25,000

Sparrow uses the LIFO inventory method, and its LIFO recapture amount increased by $10,000 during 2015. In addition, Sparrow sold property on installment during 2014. The property was sold for $40,000 and had an adjusted basis at sale of

$32,000. During 2015, Sparrow received a $15,000 payment on the installment sale. Finally, assume that no additional first-year depreciation was claimed. Compute Sparrow’s current E & P.