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Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare current E&P. *Show computations Net

Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare current E&P. *Show computations Net income per books (after-tax): $539,950 Taxable income: ?? Federal income tax liability: 69,050 Interest income from tax-exempt bonds: 9,000 Interest paid on loan incurred to purchase tax-exempt bonds: 3,000 Life insurance proceeds received as a result of death of Herons president: 400,000 Premiums paid on policy on life of Herons president: 12,000 Excess of capital losses over capital gains: 5,000 Retained earnings at beginning of year: 675,000 Cash dividends paid: 90,000 Total meals and entertainment expenses: 3,000 Excess of book(GAAP) depreciation over MACRS(tax)depreciation: 2,000 Excess of MACRS deprec. over ADS(E&P) depreciation: 1,500 Charitiable contributions carryover from last year: 1,000

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