Loon, Incorporated reported taxable income of $620,000 in 20X3 and paid federal income taxes of $204,000. Not included in the company's computation of taxable income is tax-exempt interest of $32,000, disallowed meals and entertainment expenses of $16,000, and disallowed expenses related to the tax-exempt income of $4,200. Loon deducted depreciation of $210,000 on its tax return. Under the alternative (E&P)depreciation method, the deduction would have been $82,000. Compute the company's current E&P for 20X3.

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The Answer of Loon, Incorporated reported taxable income of $620,000 in 20X3 and paid federal income taxes of $204,000. Not included in the company's computation of taxable income is tax-exempt interest of $32,000, disallowed meals and entertainment expenses of $16,000, and disallowed expenses related to the tax-exempt income of $4,200. Loon deducted depreciation of $210,000 on its tax return. Under the alternative (E&P)depreciation method, the deduction would have been $82,000. Compute the company's current E&P for 20X3.

Loon, Incorporated Reported Taxable Income of $620,000 in 20X3 and Paid