For the current year, Vitality reports a $95,000 long-term capital loss and no capital gains. Taxable income includes $65,000 of dividends from a 15%-owned domestic corporation. Vitality paid fines and penalties of $5,500 that were not deducted in computing taxable income In computing this year's taxable income, Vitality deducted a $50,000 NOL carryover from a prior tax year. Vitality claimed a $5,500 U.S. production activities deduction. Taxable income includes a deduction for $45,000 of depreciation that exceeds the depreciation allowed for E&P purposes