Compute lannister corporation accumulated earnings tax

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Problem - Lannister Corporation reports the following results during its current 2016 calendar tax year.

Taxable income $500,000

Federal income tax liability $170,000

Dividends paid on June 5, 2016 $50,000

Accumulated earnings and profits at January 1, 2016 $800,000

Long-term capital gain (included in taxable income) $50,000

Lanister is a manufacturing corporation and can justify an additional earnings accumulation of $60,000 for the current year for working capital needs in excess of its accumulated earnings and profits of $800,000. Compute Lannister Corporation's accumulated earnings tax liability for 2016.

Reference no: EM131600892

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