Corporation current earnings and profits


Mitchell Corporation reports $550,000 of taxable income for the current year. The following additional information is available:

-Mitchell reported a long-term capital loss of $90,000 for the current year. No capital gains were reported this year.

-$75,000 of dividends received from a 80% owned domestic corporation are included in taxable income.

-Mitchell contributed $70,000 to various charities during the year; however, due to limitations, $4,000 must be carried over to next year.

-Mitchell paid fines and penalties of $6,000 that were not deducted in computing taxable income.

-Mitchell paid estimated federal income tax payments of $150,000 during the year.

-Income from the following sources was not included in taxable income:

1. $12,000 of interested from Municipal bonds

2. $100,000 proceeds from a life insurance policy

What is the amount of Mitchell corporation’s current Earnings and Profits?

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Accounting Basics: Corporation current earnings and profits
Reference No:- TGS058762

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