Francis Corporation had taxable income of $260,000 for its initial taxable year. A review of company records revealed the following information:

1. The current-year tax depreciation expense on furniture and fixtures, the only asset owned by Francis Corporation, was $10,000. If Francis had used the alternative depreciation system (straight-line method), depreciation expense deducted would have been $5,000.

2. Francis had tax-exempt interest income of $22,000 that has not been included in taxable income.

3. Francis paid dividends of $16,000 that were not deducted.

4. Francis had $20,000 of returns and allowances that were deducted on the return.

5. Francis reported a $20,000 gain on an instalment sale of a non inventory item. The total gain on the sale was $100,000.

Earnings and profits for Francis Corporation at the close of the current year were