1. Boilermaker, Inc. reported taxable income of $550,000 this year and paid federal income taxes of $115,500. Not included in the companys computation of taxable income is tax-exempt income of $20,000, disallowed meals and entertainment expenses of $30,000, and disallowed expenses related to the tax-exempt income of $1,000. Boilermaker deducted depreciation of $100,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $60,000. Compute the companys current E&P.

2. Illini Corporation reported taxable income of $525,000 from operations for this year. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The autos fair market value was $30,000 and its tax basis to Illini was $0. The autos E&P basis was $15,000. Any gain from the distribution will be taxed at 21 percent. Illini had accumulated E&P of $1,500,000. What is Illinis current E&P?