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.
It received $10,000 in interest on City of Cleveland