Current EP Calculation. Beach Corporation, an accrual basis taxpayer, reports the following results for the current vear

Current E&P Calculation. Beach Corporation, an accrual basis taxpayer, reports the fol- lowing results for the current year: Income: Gross profit from manufacturing operations Dividends received from 25%-owned domestic corporation Interest income: Cor porate bonds Municipal bonds Proceeds from life insurance olicy on key employee Section 1231 gain on sale of rand Expenses: Administrative expenses Bad debts Depreciation: Financial acxounting Taxable income Alternative depreciation system (for E&P) NOL carryover Charitable contributions: Current year Carryover from last year Capital loss on sale of stock Penalty on late payment of federal taxes a. What is Beach's taxable income? b. What is Beach's current E&P? $250,000 20,000 10,000 12,000 100,000 8,000 110,000 5,000 68,000 86,000 42,000 40,000 8,000 3,500 1,200 450