Beach Corporation, an accrual basis taxpayer, reports the following results for the current year:

**Show work please**

Income:
Gross profit from manufacturing operations $250,000
Dividends received from %25 -owned domes. corp. 20,000
Interst Income: Corporate bonds 10,000
Municiple bonds 12,000
Proceeds from life insurance policy on key 100,000
employee
Section 1231 gain on sale of land 8,000
Expenses:
Administrative expenses 110,000
Bad Debts 5,000
Depreciation:
Financial accounting68,000 Taxable income 86,000 Alternative depreciation system (for E&P) 42,000 NOL carryover 40,000 Charitable contributions: Current year 8,000 Carryover from last year 3,500 Capital loss on sale of stock 1,200 US production activities deduction 1,500 Penalty on late payment of federal taxes 450

a. What is Beach's taxable income and current E&P?