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$1.$ Chrono Systems Inc., a cash$-$method C corporation, had taxable income of $$500,000$ for its initial taxable year $($year $1).$ A review of company records revealed the following information:

a$.$ Chrono Systems received a $$20,000$ dividend from ABC Corporation, of which Chrono Systems owns $22\%$ of the shares. The dividend income and associated dividend received deduction were included in taxable income.

b$.$ Chrono Systems paid $$7,000$ in fines for the parking tickets of its delivery drivers during the year.

c$.$ Chrono Systems$$ estimated federal income tax payments made during the year totaled $$100,000.$

d$.$ Chrono Systems had tax$-$exempt municipal interest income of $$15,000$ that has not been included in taxable income.

e$.$ The current$-$year tax depreciation expense on office equipment, the only assets owned by Chrono Systems, was $$48,000.$ If Chrono Systems had used the alternative depreciation system $($straight$-$line method$),$ depreciation expense deducted would have been $$4,000.$

f$.$ Chrono Systems reported a $$60,000$ gain on an installment sale of a non$-$inventory item in taxable income. The total gain on the sale was $$180,000.$

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Instructions:

Compute Chrono System Inc.$$s current earnings and profits $($E&P$)$ at the close of the

current year $($year $1).$

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