Question
Boilermaker Inc. reported taxable income of $500,000 this year and paid federal income taxes of $105,000. Not included in the companys computation of taxable income
Boilermaker Inc. reported taxable income of $500,000 this year and paid federal income taxes of $105,000. 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. (Negative amount should be indicated with a minus sign.)
What is depreciation ?
The answer 100,000 was incorrect
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