LO.2 Osprey Corporation, a calendar year taxpayer, made estimated tax payments of

$12,000 for 2012 ($3,000 per quarter). Osprey filed its Federal income tax return for 2012 reflecting a tax liability of $5,000. Due to its overpayments, in 2013 Osprey received a $7,000 refund. What is the impact on Osprey’s E & P of the payment of estimated taxes and the receipt of the Federal income tax refund?