Problem 13-18 (LO. 2) Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year $400,000 70,000 24,000 Income from services Salaries paid to employees Tax-exempt interest income Dividends from a corporation in which 40,000 17,000 110,000 Penguin holds a 12% interest Short-term capital loss on the sale of stock Estimated Federal income taxes paid Penguin purchased 7-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 440,000 81,432 V 358,568V Gross income Less: operating expenses Taxable income before dividends received deduction Less: dividends received deduction Taxable income b. Determine Penguin's current E & P. Taxable income Add: total additions to E & P 127,000 Less: total deductions from E & P 263,000 Current E& P Feedback