Margin Corporation, an accrual basis taxpayer, reports the following results for the current year (2021): (Click the icon to view the results.) Requirements a. What is Margin's taxable income, assuming it elects to use the 25% charitable contribution limitation? b. What is Margin's current E&P? Requirement a. What is Margin's taxable income, assuming it elects to use the 25% charitable contribution limitation? Total income (Form 1120, Line 11) Minus: Taxable income before special deductions Taxable income Taxable income before special deductions Taxable income Requirement b. What is Margin's current E&P? Taxable income Plus: Minus: Current E&P Data table $ 290,000 26,000 16,000 9,000 60,000 7,000 Income: Gross profit from manufacturing operations Dividends received from 25%-owned domestic corporation Interest income: Corporate bonds Municipal bonds Proceeds from life insurance policy on key employee Section 1231 gain on sale of land Expenses Administrative expenses Bad debts Depreciation: Financial accounting Taxable income Alternative depreciation system (for E&P) NOL carryover Charitable contributions: Current year (cash) 90,000 10,000 65,000 84,000 52,000 42,000 28,000 28,000 6,500 Charitable contributions: Current year (cash) Carryover from last year Capital loss on sale of stock Penalty on late payment of federal taxes 1,100 650