Erin provided the following information for Erin and Piper Corporation, a calendar year, accrual basis taxpayer. She and her sister Piper own the corporation equally. Net income per books (after-tax) Federal income tax liability Meals included in net income per books Contribution carryover deducted on this year's return Interest income from tax-exempt bonds Interest paid on loan incurred to purchase tax-exempt bonds Premiums paid on policy on the CEO's life Excess of capital losses over capital gains Depreciation & Amortization: GAAP Amortization, included in net income $4,500 TAX Amortization 7,000 E&P Amortization 0 Accumulated Earnings & Profits Cash distributions (made pro-rata to each shareholder) a) Calculate Taxable Income. $40,300 30,000 2,500 1,500 5,000 850 9,500 33,600 10,900 90,000 b) Calculate current year Earnings and Profits. c) Explain the character of the distributions and tax consequences to Erin and Piper during the year, referring to applicable IRC sections. Erin provided the following information for Erin and Piper Corporation, a calendar year, accrual basis taxpayer. She and her sister Piper own the corporation equally. Net income per books (after-tax) Federal income tax liability Meals included in net income per books Contribution carryover deducted on this year's return Interest income from tax-exempt bonds Interest paid on loan incurred to purchase tax-exempt bonds Premiums paid on policy on the CEO's life Excess of capital losses over capital gains Depreciation & Amortization: GAAP Amortization, included in net income $4,500 TAX Amortization 7,000 E&P Amortization 0 Accumulated Earnings & Profits Cash distributions (made pro-rata to each shareholder) a) Calculate Taxable Income. $40,300 30,000 2,500 1,500 5,000 850 9,500 33,600 10,900 90,000 b) Calculate current year Earnings and Profits. c) Explain the character of the distributions and tax consequences to Erin and Piper during the year, referring to applicable IRC sections