In each of the following independent situations, indicate the effect on taxable income and E & P, stating the amount of any increase (or decrease) in each as a result of the transaction. Assume that E & P has already been increased by taxable income.

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Taxable Income Increase (Decrease) E & P Increase (Decrease) Transaction a Realized gain of $80,000 on involuntary conversion of building ($10,000 of gain is recognized) b. Mining exploration costs incurred on May 1 of current year; $24,000 is deductible from current-year taxable income c. Sale of equipment to unrelated third party for $240,000; basis is $120,000 (no election out of installment method; no payments are received in current year) Dividends of $20,000 received from 5% owned corporation, together with dividends received deduction (assume that the taxable income limit does not apply) d. c, Domestic production activities deduction t. Section 179 expense deduction of $100,000 g. Continue with the facts of (f) for the next h. MACRS depreciation of $80,000. ADS i. Federal income taxes of $80,000 paid in of $45,000 claimed in current year in current year tax year depreciation would have been $90,000 current year