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

Question:

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

Beige Corporation’s current E & P is:

a. $68,000.

b. $77,000.

c. $103,000.

d. $107,000.

e. None of the above.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...