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Gator Inc. reported taxable income of $1,350,000 this year and paid federal income taxes of $283,500. Included in the company's computation of taxable income is
Gator Inc. reported taxable income of $1,350,000 this year and paid federal income taxes of $283,500. Included in the company's computation of taxable income is gain from the sale of a depreciable asset of $86,000. The income tax basis of the asset was $172,000. The E&P basis of the asset using the alternative depreciation system was $298,400. Compute the company's current E&P.
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