Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.
∙
Brown incurred a $65,000 capital loss from the sale of stock. Because Brown had no capital gains this year, none of the loss is deductible.
∙
The corporation's Federal income tax liability is $41,750.
∙
Brown incurred $18,000 in nondeductible meal and entertainment expenses.
∙
Brown uses the LIFO method when accounting for inventory. This year, the company's LIFO recapture amount increased by $3,000.
∙
Brown claimed a domestic production activities deduction under § 199 of $1,500.

What is Brown's current E & P for the year?

Question

Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.
∙
Brown incurred a $65,000 capital loss from the sale of stock. Because Brown had no capital gains this year, none of the loss is deductible.
∙
The corporation's Federal income tax liability is $41,750.
∙
Brown incurred $18,000 in nondeductible meal and entertainment expenses.
∙
Brown uses the LIFO method when accounting for inventory. This year, the company's LIFO recapture amount increased by $3,000.
∙
Brown claimed a domestic production activities deduction under § 199 of $1,500.
​
What is Brown's current E & P for the year?

Quizplus · Accepted Answer

The Answer of Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.
∙
Brown incurred a $65,000 capital loss from the sale of stock. Because Brown had no capital gains this year, none of the loss is deductible.
∙
The corporation's Federal income tax liability is $41,750.
∙
Brown incurred $18,000 in nondeductible meal and entertainment expenses.
∙
Brown uses the LIFO method when accounting for inventory. This year, the company's LIFO recapture amount increased by $3,000.
∙
Brown claimed a domestic production activities deduction under § 199 of $1,500.
​
What is Brown's current E & P for the year?

Brown Corporation, an Accrual Basis Corporation, Has Taxable Income of $150,000