Lawrence Corporation reports the following results during the current year:
Taxable income $500,000
Federal income taxes 105,000
Dividends paid: June 5 50,000
Accumulated E&P balance: January 1 800,000
No dividends were paid in the throwback period. A long-term capital gain of $50,000 is included in taxable income. The statutory accumulated earnings tax exemption has been used up in prior years. An additional earnings accumulation of $60,000 for the current year can be justified as meeting the reasonable needs of the business. What is Lawrence Corporation's accumulated earnings tax liability?

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The Answer of Lawrence Corporation reports the following results during the current year:
Taxable income $500,000
Federal income taxes 105,000
Dividends paid: June 5 50,000
Accumulated E&P balance: January 1 800,000
No dividends were paid in the throwback period. A long-term capital gain of $50,000 is included in taxable income. The statutory accumulated earnings tax exemption has been used up in prior years. An additional earnings accumulation of $60,000 for the current year can be justified as meeting the reasonable needs of the business. What is Lawrence Corporation's accumulated earnings tax liability?

Lawrence Corporation Reports the Following Results During the Current Year