(2) Fortune, Inc. uses the accrual method of accounting. What is Fortune's earnings and profits as of January 1, 2020, assuming its opening 2019 E&P was $50,000, it distributed $29,000 to its shareholders in 2019, its 2019 taxable income was equal to $25,000 and that it has the following items of income and expense for the year 2019: Net operating loss carryover 2,500. § 243 dividend received exclusion (5% interest in stock of payor).. Contributions in excess of 10% corporate limitation Federal Income tax for TYE 12/31/19 Excess of capital losses over capital gains Interest Income from Tax-exempt municipal bond NYC moving violation and parking tickets Current year Section 179 deduction 2,500 8,000 1,000 2,100 1,500 4,300 7.400 9,000

(2) Fortune, Inc. uses the accrual method of accounting. What is Fortune's earnings and profits as of January 1, 2020, assuming its opening 2019 E&P was $50,000, it distributed $29,000 to its shareholders in 2019, its 2019 taxable income was equal to $25,000 and that it has the following items of income and expense for the year 2019: Net operating loss carryover 2,500. § 243 dividend received exclusion (5% interest in stock of payor).. Contributions in excess of 10% corporate limitation Federal Income tax for TYE 12/31/19 Excess of capital losses over capital gains Interest Income from Tax-exempt municipal bond NYC moving violation and parking tickets Current year Section 179 deduction 2,500 8,000 1,000 2,100 1,500 4,300 7.400 9,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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