Rose Corporation (a calendar year taxpayer) has taxable income of $300,000, and its financial records reflect the following for the year.

Federal income taxes paid	$110,000
Net operating loss carryforward deducted currently	70,000
Gain recognized this year on an installment sale from a prior year	44,000
Depreciation deducted on tax return (ADS depreciation would have been $10,000)	40,000
Interest income on Iowa state bonds	8,000

Rose Corporation’s current E & P is:

Question 30 options:

a)

$254,000.

b)

$214,000.

c)

$104,000.

d)

$194,000.

Answer rating: 100% (QA)

To calculate Rose corporations current Earnings Profit the federal inc... View the full answer