Taxable income includes a deduction for 40000 of

Reference no: EM13587795

Current E&P Computation. Water Corporation reports $500,000 of taxable income for the current year. The following additional information is available:
• For the current year, Water reports an $80,000 long-term capital loss and no capital gains.
• Taxable income includes $80,000 of dividends from a 10%-owned domestic corporation.
• Water paid fines and penalties of $6,000 that were not deducted in computing taxable income.
• In computing this year's taxable income, Water deducted a $20,000 NOL carryover from a prior tax year.
• Water claimed a $10,000 U.S. production activities deduction.
• Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed for E&P purposes. Assume a 34% corporate tax rate. What is Water's current E&P for this year?

Reference no: EM13587795

Questions Cloud

Compare the payment of cash dividends stock dividends and : compare the payment of cash dividends stock dividends and purchase of treasury stock from existing shareholders. what

Sell the bonds from part a rather than give them to their : tax planning bart and kesha are in the 39.6 tax bracket. they are interested in reducing the taxes they pay each year.

Toft corporation produces one product its cost includes : toft corporation produces one product. its cost includes direct materials 10 per unit direct labor 12 per unit variable

Calculate the work produced by the turbine the heat that : 1000 kghr of water at 1 bar is fed to a pump where the pressure of the water is increased to 20 bar in an adiabatic

Taxable income includes a deduction for 40000 of : current eampp computation. water corporation reports 500000 of taxable income for the current year. the following

48 capital gains and losses consider the four independent : 48 capital gains and losses. consider the four independent situations below for an unmarried individual and analyze e

Acme road repair contracted with one of their clients to : acme road repair contracted with one of their clients to provide miscellaneous road repairs for 75000 acme has incurred

From the dropdown box beside each adjusting entry select : from the dropdown box beside each adjusting entry select the letter of the explanation a through i that best describes

Merchandise with a selling price of 65000 remained : gross profit method higgs company lost most of its inventory in a fire in november just before the year-end physical

User Account

All Pages