As of December 31, 2017, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated
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As of December 31, 2017, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated depreciation deduction; had straight-line depreciation been used, the deduction would have been $6,000. Also included in taxable income is an operating loss carryforward from a prior year of $3,000. Additionally, Caledonia earned $4,000 in municipal bond interest during the year. What is Caledonia Corp.’s current earnings and profits (E & P) for 2017?
a. $164,000
b. $171,000
c. $157,000
d. $168,000
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Related Book For
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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