Compute the Current E&P for ABC Corporation below. Use column to make an E&P adjustment for each line item. If no adjustment is needed enter "0" in the box. If the adjustment is negative use the minus sign, i.e. negative 1000 should be -1000. (1) (2) (3) (4) Book Income M-1s Tax Income E&P Adjustment Gross Profit from Operations $100,000 0 $100,000 0 Tax Exempt Interest 10,000 -10,000 0 Capital gains 5,000 0 5000 0 Capital Loss carryforward 0 -2000 -2000 Total Income $115,000 $-12,000 $103,000 n/a Compensation expense 30,000 0 30,000 0 Depreciation: Tax=$8,000/ E&P=$6,500 6,000 2,000 8,000 Other expenses 10,000 0 10,000 0 Total Expense 46,000 2,000 48,000 n/a Book/ Taxable Income 69,000 -14,000 55,000 n/a Federal Income Tax (21%) 0 After making your adjustments, what is ABC Corporation's current year E&P?

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To compute ABC Corporations current year EP Earnings and Profits we need to make adjustments to cert... View the full answer