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Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January 1, Year 2? A. $321, 500. B. $350,000. C. $346, 500 D. $189,750

Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January 1, Year 2? A. $321, 500. B. $350,000. C. $346, 500 D. $189,750

FINANCIAL ACCOUNTING
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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As of January 1, Year 1, Braddock, a calendar - year, accrual - method corporation, had accumulated earnings and profits of $225,000. For its Year 1 tax year, Braddock's books and records reflect the following: Taxable income per return $150, 000 Business meals in excess of 50% limitation 3,500 Demolition of a building 90, 000 Dividends paid 25,000 Federal income taxes per book and return 41, 750 Political contributions 25,000 Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January 1, Year 2? A. $321, 500 B.$350,000. C. $346, 500. D. $189,750
Transcribed Image Text:As of January 1, Year 1, Braddock, a calendar - year, accrual - method corporation, had accumulated earnings and profits of $225,000. For its Year 1 tax year, Braddock's books and records reflect the following: Taxable income per return $150, 000 Business meals in excess of 50% limitation 3,500 Demolition of a building 90, 000 Dividends paid 25,000 Federal income taxes per book and return 41, 750 Political contributions 25,000 Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January 1, Year 2? A. $321, 500 B.$350,000. C. $346, 500. D. $189,750
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