ABC Corporation, Inc. begins year 1 with 600,000 of Accumulated E&P. Determine current and accumulated E&P for
Question:
ABC Corporation, Inc. begins year 1 with 600,000 of Accumulated E&P. Determine current and accumulated E&P for the end of years 1, 2, & 3 with the following data:
YEAR 1 YEAR 2 YEAR 3
Taxable Income(loss) 450,000 (150,000) 300,000
Installment Sale in year 1 AR 1,000,000, adjusted basis 600,000
Taxes paid 140,000 0 93,000
Insurance Premiums 100,000 120,000 95,000
Life Insurance Death benefit 0 250,000 100,000
Tax Exempt Income 85,000 20,000 50,000
Total Meal & Entertainment 20,000 26,000 12,000
Section 179 Expense 100,000 20,000 100,000
Capital Loss Cf (75,000)
Capital Gain 25,000 55,000 10,000
Capital Loss (35,000)
NOL Carryforward 140,000
Distributions 1,000,000 200,000 210,000
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill