Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2011, for a total of $3,200. Tungsten filed its 2011 tax return in 2012 and the return showed a tax liability $4,200. At the time of filing, March 15, 2012, 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 E & P in 2012 because the payment was made in 2012, impacting the E & P for that year.

Tungsten Corporation, a Calendar Year Cash Basis Taxpayer, Made Estimated