Silver Corporation, a calendar year taxpayer, has taxable income of $550,000. Among its transactions for the year are the following:

Disregarding any provision for Federal income taxes, Silver Corporation's current E & P is:

Question

Silver Corporation, a calendar year taxpayer, has taxable income of $550,000. Among its transactions for the year are the following:
​

Disregarding any provision for Federal income taxes, Silver Corporation's current E & P is:

Quizplus · Accepted Answer

To calculate current E&P:
Taxable Income: $550,000
Add: Federal Income Tax: N/A (disregarded)
Less: Tax Exempt Income: N/A (not given in the question)
Less: Expenses Not Deductible for E&P: N/A (not given in the question)
E&P: $550,000 + $0 - $0 - $0 = $550,000
Therefore, the correct option is B) $588,500.

Silver Corporation, a Calendar Year Taxpayer, Has Taxable Income of $550,000