Karma Corporation uses the accrual method of accounting. Karma shared the following information from their most recent year end: \begin{tabular}{|lr|} \hline Net income per books (after tax expense) & $189,050 \\ \hline Federal income tax expense & \\ Federal Income Tax paid & 30,950 \\ Interest income from tax-exempt bonds & 37,000 \\ Excess executive compensation & 4,000 \\ Disallowed meals and entertainment expense & 1,500 \\ Current year excess of capital losses over capital gains & 3,000 \\ Retained earnings at beginning of year & 1,500 \\ Cash dividends paid during year & 275,000 \\ Book depreciation & 70,000 \\ MACRS depreciation & 125,000 \\ ADS depreciation & 145,000 \\ \hline \end{tabular} REQUIRED a. Calculate taxable income b. Calculate current E\&P Karma Corporation uses the accrual method of accounting. Karma shared the following information from their most recent year end: \begin{tabular}{|lr|} \hline Net income per books (after tax expense) & $189,050 \\ \hline Federal income tax expense & \\ Federal Income Tax paid & 30,950 \\ Interest income from tax-exempt bonds & 37,000 \\ Excess executive compensation & 4,000 \\ Disallowed meals and entertainment expense & 1,500 \\ Current year excess of capital losses over capital gains & 3,000 \\ Retained earnings at beginning of year & 1,500 \\ Cash dividends paid during year & 275,000 \\ Book depreciation & 70,000 \\ MACRS depreciation & 125,000 \\ ADS depreciation & 145,000 \\ \hline \end{tabular} REQUIRED a. Calculate taxable income b. Calculate current E\&P