This year Truckit reported taxable income of $160,000 and received $20,000 of municipal interest. Truckit paid...
This year Truckit reported taxable income of $160,000 and received $20,000 of municipal interest. Truckit paid $55,000 in entertainment expenses and $15,000 in fines and penalties Truckit had $50,000 of accumulated E&P at the beginning of the year. What is Truckit’s current E&P?
180,000
142,200
110,000
76,400
Homework Answers
Answer) $76400
Explanation:
Current E&P = Taxable income + municipal interest - entertainment expense - fines and penalties - taxes
= 160000 + 20000 - 55000 - 15000 - (160000 x 21%)
= 76400
Tax rate is assumed to be 21%.
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