Copley Corporation had taxable income per return of $250,000. Other information which may or may not figure into taxable income is listed below. (THIS PROBLEM REQUIRES TAXABLE INCOME TO BE ADJUSTED TO DERIVE CURRENT E&P. REMEMBER THAT E&P IS CALCULATED MUCH MORE LIKE FINANCIAL ACCOUNTING INCOME AND CERTAIN TAX RULES (FOR EXAMPLE, CORPORATIONS CANNOT DEDUCT NET CAPITAL LOSSES, CORPORATIONS GET TO EXCLUDE A CERTAIN PORTION OF DIVIDENDS RECEIVED) DO NOT APPLY TO CALCULATING CURRENT E&P. IF YOU GET STUCK, CHECK OUT THE SECTION "HOW TO DETERMINE E&P FOR THE CURRENT YEAR" IN THE TOPIC 7 NOTES. YOU'VE MORE OR LESS DONE THIS RECONCILIATION IN THE PRIOR APPLICATION QUIZ.

Capital gains: $20,000

Capital losses: $35,000

Tax exempt interest: $10,000

Federal income taxes: $52,500

Section 179 deduction (taken all in current tax year): $100,000 (this is taken over 5 years (straight line) for E&P purposes).

Total dividends received (< 20% ownership): $20,000

Tax depreciation in excess of E&P depreciation: $30,000

What was the amount of Current E&P for the year?

HINT: There are 6 adjustments here and 4 of them are positive.

DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!!

Answer: