Ardbeg Corporation has $800,000 of taxable income on which it pays a tax of $272,000
Question # 00175332
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Updated on: 01/18/2016 04:14 PM Due on: 02/17/2016
Ardbeg Corporation has $800,000 of taxable income on which it pays a tax of $272,000. In determining its earnings and profits for the year, the accountant used the following information:
a. Ardbeg received a dividend of $20,000 from a company in which it has a 60 percent interest.
b. It used a $30,000 capital loss carryover to offset its entire capital gain.
c. It was unable to deduct $12,000 of its charitable contribution due to the limitation.
d. It had a loss of $20,000 on the sale of some investments to its sole shareholder.
e. It received $10,000 in interest on City of Cleveland bonds
What is the corporation’s current earnings and profits?
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Rating:
/5
Solution: Ardbeg Corporation has $800,000 of taxable income on which it pays a tax of $272,000