As of December 31, 20X15, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated
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As of December 31, 20X15, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated depreciation deduction; had straight-line depreciation been used, the deduction would have been $6,000. Also included in taxable income is an operating loss carryforward from a prior year of $3,000.
Additionally, Caledonia earned $4,000 in municipal bond interest during the year. What is Caledonia Corp.’s current earnings and profits (E & P) for 20X15?
a. $164,000
b. $171,000
c. $157,000
d. $168,000
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Related Book For
Essentials Of Taxation 2016 Individuals And Business Entities
ISBN: 9781305395305
39th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, William H. Jr. Hoffman
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