Reference no: EM132677279

Problem - 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 purposes 10,000

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

Required - Calculate Loquat Corporation's taxable income for the current year based on the information given. Show your calculations.