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Vine, Incorporated, reported taxable income of $ 8 0 0 , 0 0 0 in year 1 and paid federal income taxes of $ 1

Vine, Incorporated, reported taxable income of $800,000 in year 1 and paid federal income taxes of $168,000. Included in the Vine's computation of taxable income is gain from the sale of a depreciable asset for $200,000. 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 Vine's current E&P for year 1.

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