McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 46

Paladin, Inc. reported taxable income of $1,000,000 in 2011 and paid federal income taxes of $340,000. The company reported a capital gain from sale of investments of $150,000, which was partially offset by a $100,000 net capital loss carryover from 2010, resulting in a net capital gain of $50,000 included in taxable income. Compute the company's current E P for 2011.