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.

Note the following: (1) Assume that E & P has already been increased by taxable income. (2) Enter a decrease as a negative number by using the minus sign. (3) If there is no effect, enter zero.

	Transaction	Taxable Income Increase (Decrease)		E & P Increase (Decrease)
a.	Realized gain of $80,000 on involuntary conversion of building ($10,000 of gain is recognized).	$		$
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).	$		$
e.	Domestic production activities deduction of $45,000 claimed in current year.	$		$
f.	Section 179 expense deduction of $25,000 in current year.	$		$
g.	Impact of current-year 179 expense deduction in succeeding year.	$		$
h.	MACRS depreciation of $80,000. ADS depreciation would have been $90,000.	$		$
i.	Federal income taxes of $80,000 paid in current year.	$		$