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For each of the following transactions, indicate wheth-er a special adjustment must be made in...

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Accounting

For each of the following transactions, indicate wheth-er a special adjustment must be made in computing R Corporations current E&P. Answer assuming that E&P has already been adjusted for current taxable income.

  1. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000.
  2. The corporation received $5,000 of interest income from its investment in tax-exempt bonds.
  3. The corporation received a $10,000 dividend from General Motors Corporation.
  4. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code 179.
  5. The corporation reported a 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000

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