Tungsten Corporation,a calendar year cash basis taxpayer,made estimated tax payments of $800 each quarter in 2013,for a total of $3,200.Tungsten filed its 2013 tax return in 2014 and the return showed a tax liability $4,200.At the time of filing,March 15,2014,Tungsten paid an additional $1,000 in Federal income taxes.How does the additional payment of $1,000 impact Tungsten's E & P?

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The additional payment of $1,000 decreases Tungsten's Earnings and Profits (E & P) in 2014, as the payment was made in that year.

Tungsten Corporation,a Calendar Year Cash Basis Taxpayer,made Estimated Tax Payments