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Problem 3) Cherry Tree, Inc. reported taxable income of $700,000 in 2023 and paid federal income taxes of $227,000. Included in the company's computation of

Problem 3) Cherry Tree, Inc. reported taxable income of $700,000 in 2023 and paid federal income taxes of $227,000. Included in the company's computation of taxable income is gain from sale of a depreciable asset of $150,000. The income tax basis of the asset was $50,000. The E&P basis of the asset using the alternative depreciation system was $75,000. Compute the company's current E&P for 2023.

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