In each of the following independent situations, indicate the effect on taxable income and E &...

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In each of the following independent situations, indicate the effect on taxable income and E & P, stating the amount of any increase (or decrease) in each as a result of the transaction. Assume that E & P has already been increased by taxable income. Enter a decrease as a negative number by using the minus sign. If there is no effect, enter "0". Taxable Income Increase (Decrease) Transaction a. Realized gain of $80,000 on involuntary conversion of building ($10,000 of gain is recognized). $ E & P Increase (Decrease) 10,000 $ 0 b. Mining exploration costs incurred on May 1 of current year; $24,000 is deductible from current-year taxable income. c. Sale of equipment to unrelated third party for $240,000; basis is $120,000 (no election out of installment method; no payments are received in current year). d. Dividends of $20,000 received from 5% owned corporation, together with dividends received deduction (assume that taxable income limit does not apply). -24,000 22,400 120,000 6,000 X 14,000 X e. Additional first-year (bonus) depreciation of $45,000 claimed in current $ -45,000 year. f. Section 179 expense deduction of $25,000 in current year. -25,000 g. Impact of current-year 179 expense deduction in succeeding year. 0 h. MACRS depreciation of $80,000. ADS depreciation would have been $90,000. -80,000 i. Federal income taxes of $80,000 paid in current year. 45,000 $ 20,000 -20,000 X -10,000 0 -80,000 In each of the following independent situations, indicate the effect on taxable income and E & P, stating the amount of any increase (or decrease) in each as a result of the transaction. Assume that E & P has already been increased by taxable income. Enter a decrease as a negative number by using the minus sign. If there is no effect, enter "0". Taxable Income Increase (Decrease) Transaction a. Realized gain of $80,000 on involuntary conversion of building ($10,000 of gain is recognized). $ E & P Increase (Decrease) 10,000 $ 0 b. Mining exploration costs incurred on May 1 of current year; $24,000 is deductible from current-year taxable income. c. Sale of equipment to unrelated third party for $240,000; basis is $120,000 (no election out of installment method; no payments are received in current year). d. Dividends of $20,000 received from 5% owned corporation, together with dividends received deduction (assume that taxable income limit does not apply). -24,000 22,400 120,000 6,000 X 14,000 X e. Additional first-year (bonus) depreciation of $45,000 claimed in current $ -45,000 year. f. Section 179 expense deduction of $25,000 in current year. -25,000 g. Impact of current-year 179 expense deduction in succeeding year. 0 h. MACRS depreciation of $80,000. ADS depreciation would have been $90,000. -80,000 i. Federal income taxes of $80,000 paid in current year. 45,000 $ 20,000 -20,000 X -10,000 0 -80,000