Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in...
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Accounting
Penguin Corporation (a cash basis, calendar year taxpayer) recorded 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 corp Penguin holds a 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; it did not claim any section 179 or additional first-year depreciation. The property has a 10-year ADR midpoint life.
A. Determine Penguin's taxable income and current E & P.
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