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Federal income taxes paid $75,000 Net operating loss carry forward deducted curr

ID: 2421119 • Letter: F

Question

Federal income taxes paid

$75,000

Net operating loss carry forward deducted currently

$35,000

Gain recognized this year on an installment sale from a prior year

$22,000

Depreciation deducted on tax return (ADS depreciation would have been $5,000)

$20,000

Interest income on Iowa state bonds

$4,000

       $68,000
       $77,000
       $103,000
       $107,000
       None of the above

Beige Corporation (a calendar year taxpayer) has taxable income of $150,000, and its financial records reflect the following for the year.

Federal income taxes paid

$75,000

Net operating loss carry forward deducted currently

$35,000

Gain recognized this year on an installment sale from a prior year

$22,000

Depreciation deducted on tax return (ADS depreciation would have been $5,000)

$20,000

Interest income on Iowa state bonds

$4,000




What is Beige Corporation's current E & P?

Explanation / Answer

the answer would be $ 107,000

Taxable Income $150,000

ADD a) Net operating loss carry forward deducted currently $35,000

b) Depreciation deducted on tax return $20,000

c) Interest income on Iowa state bonds $4,000

---------- $ 59,000

Less a) federal Income tax paid $75,000

b) ADS depreciation would have been $5,000

c) Gain recognized this year on an installment

   sale from a prior year $22,000

--------------- $102000

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current E&P $107000

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