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

Question

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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:
Collection of proceeds from insurance policy on life of corporate
officer in excess of cash surrender value) $ 9,000
Realized gain not recognized) on an involuntary conversion 10,000
Nondeductible fines and penalties 21,000
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