Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20X2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current earnings and profits for 20X3 would be:

Question

Quizplus · Accepted Answer

$1,000,000 - $340,000 + $5,000 + $10,000 - $50,000 = $625,000.

Packard Corporation Reported Taxable Income of $1,000,000 in 20X3 and Paid