Reference no: EM133038472

Question - 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 dividends received deduction of $1,500.

What is Brown's current E & P for the year?