Problem 3.1 - Earnings and Profits Plant Corporation has the following items of income and expense for the 20x8 tax year: Gross Receipts $200,000 $162 (Deductible Operating) Expenses $100,000 Dividends Received (from 10% Owned Corporation) $ 10,000 Interest Received on State Bonds $ 20,000 Book Gain on 1/1/20x8 Installment Sale $100,000 (Total installments receipts = $1,000,000 Current Year Receipts = $200,000, Installment Agreement is for 5 Years) Capital Loss $ 5,000 Penalties $ 2,000 a) Calculate Plant Corporation's taxable income for 20x8. b) Calculate Plant Corporation's earnings and profits for 20x8