Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $170,000. Not included in the computation was a disallowed meals and entertainment expense of $2,000, tax exempt income of $1,000, and deferred gain on an installment sale of $25,000. The corporation's current earnings and profits for year 1 would be:

Question

Quizplus · Accepted Answer

$500,000 - $170,000 - $2,000 + $1,000 + $25,000 = $354,000

Grand River Corporation Reported Taxable Income of $500,000 in Year