Mystical Corporation is a calendar year, accrual basis corporation. For 2022, the corporate tax returns reports $575,920 in taxable income. In addition, the corporation provides the following information: Federal Income tax liability paid $ 120,940 Tax-exempt interest income 6,250 Entertainment Expense 4,750 Excess of capital losses over capital gains 14,000 MACRS cost recovery deduction 79,000 E&P depreciation (straightline depreciation using ADS) 56,000 Section 179 expense elected and deducted during 2020 for regular tax purposes 40,000 Dividends received from domestic corporations (less than 20% owned) 25,000 Using the readings from this module, and concept summary 5.1 in the book, calculate Mystical Corporations E&P for the calendar year?

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Calculating Mystical Corporations EP for 2022 Mystical Corporations Earnings and Profits EP for 2... View the full answer