What creates a temporary book$-$tax difference that must be reconciled on either a Schedule M$-1$ or a Schedule M$-3?$

O Interest received from municipal bonds owned by the corporation

O Fines paid by the corporation for violation of Environmental Protection Agency rules

O Excess charitable contribution deductions carried forward from a prior year and deducted in the current year

O Meal expenses incurred in a lunch meeting during which business is directly discussed

In a major recession year, a corporation has taxable income of $($$$200,000),$ a tax$-$exempt interest of $$260,000,$ and a federal income tax refund of $$80,000$ from over payment of last year's taxes

What are the firm's earnings and profits?

$($$$80,000)$

$50$

$$60,000$

$$140,000$

During the current year, a calendar year corporation has a $$200,000$ deficit in current earnings and profits. It had $$300,000$ in positive accumulated earnings and profits at the beginning of the year. The corporation distributes $$350,000$ to its sole shareholder on December $31.$

How much dividend income should this shareholder recognize?

$$100,000$

$$250,000$

$$300,000$

$$$$350,000$