Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year.

Income from services $400,000

Salaries paid to employees 70,000

Tax-exempt interest income 24,000

Dividends from a corporation in whichPenguin holds a 12% interest 40,000

Short-term capital loss on the sale of stock 17,000

Estimated Federal income taxes paid 110,000

Penguin purchased seven-year MACRS property in the current year for $80,000 (current year percentage 14.29%); it did not claim any 179 or additional first-year depreciation. The property has a 10-year ADR midpoint life.

a.Determine taxable income and current E & P for Penguin Corporation. When required, round your answers to the nearest dollar.

b. Determine Penguin's current E&P

Penguin Corporation (a cash basis, calendar year taxpayer} recorded the following income and expenses in the current year. Income from servica $400,0DD Salaries paid to employea 70,0(10 Tax-exempt Interest income 24,0(10 Dividends from a corporation in which Penguin holds a 12% interest 4o,ooo Short-tom capital loss on the sale of stock 1?,ooo Estimated Federal Income taxes paid 110,0 Penguin purchased seven-year MACRS property in the current year for $By [current year peroentage 14.29%); it did not claim any 139 or additional rst-year depreciation. The property has a 10-year ADP midpoint life. a. Determine taxable income and current E St P for Penguin Corporation. When required: round your answers to the nearest dollar. Gross Income Less: operating expenses Taxable income before dividends received deduction Less: dividends received deduction Taxable income Feedback .'Cl'mk MyWork b. Determine Penguin's current E 81 P. Taxable income G Add: total additions to E Ii P : Loss: total deductions from E B. P