The following information for 2009 relates to Sparrow Corporation, a calendar year, accrual method taxpayer.

Net income per books (after tax) $134,700

Federal income tax expense per books 59,300

Tax-exempt interest income 6,000

MACRS depreciation in excess of straight-line depreciation used for financial statement purposes 8,000

Charitable contribution in excess of taxable income limitation 7,000

Premiums paid on life insurance policy on the president (Sparrow is beneficiary of policy) 5,000

Interest on loan to purchase tax-exempt bonds 3,000

Based on the above information, used schedule M-1 of form 1120, which is available on the IRS web site, to determine Sparrow's taxable income for 2009.