Chapter 20 Problems: Corporate Distributions & Liquidations 20-31 Earnings and Profits. D Corporation's taxable income for the year was computed as follows: $1,000,000 (900,000) $ 100,000 20,000 Gross income from operations Less: Operating expenses Net income from operations Dividend income Long-term capital gain. Less: Capital loss carryover Income before special deductions Net operating loss carryover Dividends-received deduction Total of special deductions.. Taxable income $15,000 (7,000) 8,000 $ 128,000 $ 9,000 10,000 (19,000) $ 109,000 Additional information: 1. The corporation received $5,000 in tax-exempt interest income. 2. Included in operating expenses is depreciation of $130,000. Straight-line de- preciation of the depreciable assets would have been $50,000. Compute the earnings and profits of D Corporation for the current year