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XYZ Inc.has taxable income this year (post-2017) of $795,000,computed as follows: Sales revenue $1,388,000 Dividend income50,000 MACRS depreciation(140,000) Salary expense (320,000) Operating expenses(143,000) Deductible meals(50%)

XYZ Inc.has taxable income this year (post-2017) of $795,000,computed as follows:

Sales revenue $1,388,000 Dividend income50,000 MACRS depreciation(140,000) Salary expense (320,000) Operating expenses(143,000) Deductible meals(50%) (15,000) Dividends-received deduction(25,000)

Taxable income$795,000

XYZ also paid$5,000of nondeductible fines this year and$166,000of federal income tax.ADS depreciation would have been$122,000.

What are XYZs current year earnings and profits?

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