The Loquat Corporation has book net income of $222,400 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 $33,360 • Depreciation deducted on the books which is not deductible for tax purposes 44,480 • Deduction for 50 percent of meals expense which is not allowed for tax purposes 20,016 • Deduction for a tax penalty not allowed for tax purposes 8,896 • Tax-exempt interest income included in book income but not in tax income 13,344   Calculate Loquat Corporation's taxable income for the current year based on the information given.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.