Beige Corporation (a calendar year taxpayer)has taxable income of $150,000,and its financial records reflect the following for the year. Beige Corporation's current E & P is:

Question

Beige Corporation (a calendar year taxpayer)has taxable income of $150,000,and its financial records reflect the following for the year.  Beige Corporation's current E & P is:

Quizplus · Accepted Answer

To calculate current E&P, we start with taxable income and make adjustments for items that are included in taxable income, but not in E&P and items that are included in E&P, but not in taxable income. 
Starting with taxable income of $150,000, we make the following adjustments: 
1. Add back charitable contributions: $10,000 
2. Subtract dividends received deduction: $8,000 
3. Subtract excess depletion: $25,000 
4. Add amortization: $5,000 
5. Subtract non-deductible expense: $25,000 
So, Beige Corporation's current E&P is:
$150,000 + $10,000 - $8,000 - $25,000 + $5,000 - $25,000 = $107,000. 
Therefore, the correct answer is D.

Beige Corporation (A Calendar Year Taxpayer)has Taxable Income of $150,000,and