TigerCo. Motorsports Corporation, an accrual-method corporation, reported taxable income of $1,460,000 this year. Included in the computation of taxable income were the following items:

MACRS depreciation	$200,000
Depreciation for earnings & profits	$120,000
Net capital loss carryover	$ 10,000
New operating loss carryover	$ 25,000
Capital gain from distribution of land*	$ 65,000

* See distribution specifics below.

Not included in the computation of taxable income were the following items:

Tax-exempt income	$ 5,000
Life insurance proceeds	$250,000
Excess current-year charitable contribution*	$ 2,000
Nondeductible life insurance premiums	$ 3,500
Nondeductible interest expense**	$ 1,000

*To be carried over to the next year **Interest expense on a loan used to buy tax-exempt bonds

TigerCo. accrued and paid federal income taxes this year of $306,600.

TigerCos accumulated E&P at the beginning of the year was $2,400,000.

During the year, TigerCo. made the following distributions to its sole shareholder, Antonio (Tony) Pasquale:

June 30
Cash	$ 50,000
September 30
Parcel of land (Fair market value)	$ 75,000
TigerCo.s basis in land	$ 10,000
Existing mortgage on property*	$ 15,000

*Pasquale assumed existing mortgage on the property

Complete the following tasks

• Prepare working papers, in good form, showing computation of TigerCo.s current E&P for this year.
• Prepare a schedule of dividend income reported by Tony Pasquale this year as a result of the TigerCo distributions.
• Compute TigerCo.s accumulated E&P at the beginning of next year.

Answer the following questions:

• What are the types of business entities that the U.S. tax system recognizes?
• What are some tax and non-tax issues Pasquale should have considered before incorporating this business?

ALSO INCLUDE THESE ON THE SUBMISSION.

• MS Excel document with spreadsheets for the results of each of the tasks
• MS Word document that provides answers to the questions.