Z Corporation has taxable income of $100,000 in 2020 after properly accounting for all the following items on the tax return. In reviewing the tax workpapers you discover the following notations. Indicate for each of the following transactions, what necessary adjustment to taxable income that is needed to determine the current E & P.

Label your answers A-E and indicate the dollar amount for each adjustment. If the adjustment is a negative one, enclose the amount in brackets. If no adjustment is needed, state None.

A. During 2020, the company paid $21,000 in federal income taxes

B. During 2020, the company elected to expense $40,000 under Section 179

C. In 2020, the company received $1,000 in tax-exempt income

D. In 2020, the company paid $6,000 in business meals.

E. In 2020, the company had $5,000 in capital gains. From 2019, they had a $4,000 capital loss carryforward which they could utilize in 2020.