1) Grand River Corporation reported taxable income of $800,000 in 20X3 and paid federal income taxes of $272,000. Not included in the computation was a disallowed meals and entertainment expense of $2,600, tax-exempt income of $1,600, and deferred gain on a current year transaction treated as an installment sale of $28,000. The corporation's current earnings and profits for 20X3 would be:

a. $826,400

b. $800,000

c. $550,000

d. $529,600

2) Viking Corporation is owned equally by Sven and his wife Olga, each of whom hold 100 shares in the company. Viking redeemed 60 shares of Sven's stock for $1,700 per share on December 31, 20X3. Vikings had total E&P of $430,000. What are the tax consequences to Viking because of the stock redemption

a. No reduction in E&P because of the exchange

b. A reduction of $102,000 in E&P because of the exchange

c. A reduction of $129,000 in E&P because of the exchange

d. A reduction of $258,000 in E&P because of the exchange

3) Abbot Corporation reported a net operating loss of $530,000 in 20X3, which the corporation elected to carryforward to 20X4. Included in the computation of the taxable loss was regular depreciation of $230,000 (E&P depreciation is $50,000), first year expensing under SS179 of $63,000, and dividends received deduction of $11,300. The corporation's current earnings and profits for 20X3 would be:

a. ($288,300)

b. ($338,700)

c. ($530,000)

d. ($643,000)