Yellow Corporation, a calendar year taxpayer, made estimated tax payments of $$40,000$ for $2024($ $$10,000$ per quarter$).$ Yellow filed its Federal income tax return for $2024$ reflecting a tax liability of $$15,000.$ Due to its overpayments, Yellow received a $$25,000$ refund in $2025.$

What is the impact on Yellow Corporation's E & P of the payment of estimated taxes and the receipt of the Federal income tax refund?

To compute Yellow's E & P for $2024,$ the $$40,000$ for Federal income taxes paid would be $$ taxable income. To compute E & P for $2025,$ Yellow Corporation would $$ $$25,000$ to taxable income to reflect the Federal income tax refund