Loon inc. reported taxable income of 600000 in 2011 and, Ask an Expert

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Loon, Inc. reported taxable income of $600,000 in 2011 and paid federal income taxes of $202,000. Not included in the company's computation of taxable income is tax-exempt interest of $30,000, disallowed meals and entertainment expenses of $15,000, and disallowed expenses related to the taxexempt income of $4,000. Loon deducted depreciation of $200,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $80,000. Compute the company's current E&P for 2011.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9409951

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