Dauphin Corporation has taxable income of $600,000 in the current year. In the prior year, Dauphin took a Section 179 deduction for $100,000 but took no Section 179 deductions in the current year for tax purposes. For tax purposes, regular depreciation was $30,000 in the current year but depreciation for book and E&P purposes was only $20,000. Dauphin had $20,000 of capital gains but $30,000 of capital losses in the current year. Finally, the company paid $126,000 of income taxes this year. Dauphin starts the year with $400,000 in accumulated E&P and distributes $100,000 of cash dividends during the year. After all of these events, accumulated E&P equals: Question options: $764,000 $880,000 $754,000

Dauphin Corporation has taxable income of $600,000 in the current year. In the prior year, Dauphin took a Section 179 deduction for $100,000 but took no Section 179 deductions in the current year for tax purposes. For tax purposes, regular depreciation was $30,000 in the current year but depreciation for book and E&P purposes was only $20,000. Dauphin had $20,000 of capital gains but $30,000 of capital losses in the current year. Finally, the company paid $126,000 of income taxes this year. Dauphin starts the year with $400,000 in accumulated E&P and distributes $100,000 of cash dividends during the year. After all of these events, accumulated E&P equals: Question options: $764,000 $880,000 $754,000

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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