Kite Corporation, a calendar year taxpayer, has taxable income of $360,000 for 2020. Among its transactions for the year are the following: $$\begin{array}{l}
\text { Collection of proceeds from insurance policy on life of corporate }\
\begin{array} { l r }
\text { officer (in excess of cash surrender value) } & \$ 9,000 \
\text { Realized gain (not recognized) on an involuntary conversion } & 10,000 \
\text { Nondeductible fines and penalties } & 21,000
\end{array}
\end{array}$$ Disregarding any provision for Federal income taxes, determine Kite Corporation's current E & P for 2020.

Question

Kite Corporation, a calendar year taxpayer, has taxable income of $360,000 for 2020. Among its transactions for the year are the following: $$\begin{array}{l}
\text { Collection of proceeds from insurance policy on life of corporate }\
\begin{array} { l r } 
\text { officer (in excess of cash surrender value) } & \$ 9,000 \
\text { Realized gain (not recognized) on an involuntary conversion } & 10,000 \
\text { Nondeductible fines and penalties } & 21,000
\end{array}
\end{array}$$ Disregarding any provision for Federal income taxes, determine Kite Corporation's current E & P for 2020.

Quizplus · Accepted Answer

The Answer of Kite Corporation, a calendar year taxpayer, has taxable income of $360,000 for 2020. Among its transactions for the year are the following: $$\begin{array}{l}
\text { Collection of proceeds from insurance policy on life of corporate }\
\begin{array} { l r } 
\text { officer (in excess of cash surrender value) } & \$ 9,000 \
\text { Realized gain (not recognized) on an involuntary conversion } & 10,000 \
\text { Nondeductible fines and penalties } & 21,000
\end{array}
\end{array}$$ Disregarding any provision for Federal income taxes, determine Kite Corporation's current E & P for 2020.

Kite Corporation, a Calendar Year Taxpayer, Has Taxable Income of $360,000