Penguin purchased seven-year macrs property in the current, Ask an Expert

Accounting

Penguin Corporation (a cash basis, calendar year taxpayer) had the following income and expenses in the current year.

Income from services $400,000
Salaries paid to employees 70,000
Tax-exempt interest income 24,000
Dividends from a corporation in which penguin holds at 12%interest 40,000
Short-term capital loss on the sale of stock 17,000
Estimated Federal income taxes paid 110,000

Penguin purchased seven-year MACRS property in the current year for $80,000. No?179 election was made. The property has a 10-year ADR midpoint life. Determine Penguin's taxable income and current E&P.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9441510

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