Reference no: EM133034679
Problem - Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.
Brown incurred a $65,000 capital loss from the sale of stock. Because
Brown had no capital gains this year, none of the loss is deductible.
The corporation's Federal income tax liability is $31,500.
Brown incurred $18,000 in nondeductible meal expenses.
Brown uses the LIFO method when accounting for inventory. This year, the company's LIFO recapture amount increased by $3,000.
Brown claimed a dividend received deduction of $1,500.
Required - What is Brown's current E & P for the year?