Wood Inc., an accrual basis taxpayer, reported the followng results for the current year: Matt, the Tax Manager can't figure out how to compute the taxable income, income tax liability or the current E\&P. Since you remember him from Fed Tax II, and you did so well in the class, won't you help him out? Income Gross profit from operations Dividends received from 25% owned domestic corp Interest income Corporate bonds Municipal bonds Proceeds from life insurance policy on key employee Section 1231 gain on sale of land $250,000 20,000 10,000 12,000 100,000 8,000 Expenses Administrative expenses Bad debts Depreciation: Alternative depreciation (for E\&P) 42,000 Taxable income 86,000 NOL carryover Charitable contributions Current year Carryover from last year 40,000 Capital loss on sale of stock Penalty for filing taxes late 8,000 3,500 1,200 450 Wood Inc., an accrual basis taxpayer, reported the followng results for the current year: Matt, the Tax Manager can't figure out how to compute the taxable income, income tax liability or the current E\&P. Since you remember him from Fed Tax II, and you did so well in the class, won't you help him out? Income Gross profit from operations Dividends received from 25% owned domestic corp Interest income Corporate bonds Municipal bonds Proceeds from life insurance policy on key employee Section 1231 gain on sale of land $250,000 20,000 10,000 12,000 100,000 8,000 Expenses Administrative expenses Bad debts Depreciation: Alternative depreciation (for E\&P) 42,000 Taxable income 86,000 NOL carryover Charitable contributions Current year Carryover from last year 40,000 Capital loss on sale of stock Penalty for filing taxes late 8,000 3,500 1,200 450