Platinum Corporation, a calendar year taxpayer, has taxable income of $500,000.Among its transactions for the year are the following: Disregarding any provision for Federal income taxes, Platinum Corporation's current E & P is:

Question

Platinum Corporation, a calendar year taxpayer, has taxable income of $500,000.Among its transactions for the year are the following:  Disregarding any provision for Federal income taxes, Platinum Corporation's current E & P is:

Quizplus · Accepted Answer

To calculate current E&P, we start with taxable income ($500,000) and add back certain deductions and subtractions, such as dividends received deduction and excess capital loss. None of these deductions or subtractions are given in the problem, so we assume there are none.

Therefore, Platinum Corporation's current E&P is equal to its taxable income of $500,000. Adding this to its beginning E&P (which is not given in the problem) would give us its ending E&P.

Platinum Corporation, a Calendar Year Taxpayer, Has Taxable Income of $500,000.Among