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 $31,500.
∙ Brown incurred $18,000 in nondeductible meal 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 dividends received deduction of $1,500. What is Brown's current E & P for the year?

Question

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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 $31,500.
∙ Brown incurred $18,000 in nondeductible meal 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 dividends received deduction 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