Earwood Corporation, a calendar yesr taxpayer, receives dividerd income of $140,000 from a corporation in which it holds Earwood siso recelves interest income of $15,000 from muricipal bonds. (The munici construct a park.) Earwood borrowed tems, Earwood's taxable income is s320,000. Earwood has $90,000 of scoumulated e & P at the end of the pnior year income taxes of $98,250 during the year pality used the proceeds from the bond issue to funds to purchase the muricipal bonds and pays $12,000 of interest on the loan. Excluding these Cick here to view the Dividend Received Deduction Tabie a. After these items are taken into account, Earwood Corporation's taxable income is 369,000 The Code does not explicitly defire the tem earrings and profits. Instead, a series of adjustments to texable income are identified to measure of the corporation's economic income. Both cash basis and accrual basis corporations use the same approach when detemining E & P b. Itits beginning balance tris year in accumusted E & P is $90,000, then Earwood Corporation's acoumulated E &P at the start of next year is 553,000 | X incomect Check My Work All work saved ubmit sign