Beach Corporation reported the following in 2019 using the accrual method of accounting. Income: Income from operations
Question:
Beach Corporation reported the following in 2019 using the accrual method of accounting.
Income:
Income from operations Dividends received from 15%-owned $375,000
domestic corporation 30,000
Interest Income:
Corporate bonds 15,000
Municipal bonds Proceeds from life insurance policy on 18,000
key employee (cash surrender value $25,000) 150,000
Expenses:
Expenses from operations 165,000
Depreciation: MACRS 130,000
Alternative Deprec. System 63,000
NOL Carryforward from 2018 60,000
Total entertainment expense 13,200
Capital loss on sale of stock 1,800
Based on the above, Beach determined its taxable income is $50,000 and its Federal income tax for the current year is $10,500.
In the space below and/or on an additional page, calculate Beach's Current Earnings & Profits for 2019.
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman