What is water current e-p for this year

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Question - 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 loss incurred last year.

Taxable income includes a deduction for $40,000 of depreciation that exceeds the de-preciation allowed for E&P purposes. Assume a 21% corporate tax rate. What is Water's current E&P for this year?

Reference no: EM133131646

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