Gator Incorporated reported taxable income of $1,000,000 this year and paid federal income taxes of $210,000. Included in the company's computation of taxable income is gain from the sale of a depreciable asset of $50,000. The income tax basis of the asset was $100,000. The E&P basis of the asset using the alternative depreciation system was $175,000. Compute the company's current E&P Note: Negative amount should be indicated with a minus sign. Taxable income Federal income taxes E&P loss from sale of asset Regular tax gain from sale of asset Current E&P $ 1,000,000 (210,000) $ 700,000
Gator Incorporated reported taxable income of $1,000,000 this year and paid federal income taxes of $210,000. Included in the company's computation of taxable income is gain from the sale of a depreciable asset of $50,000. The income tax basis of the asset was $100,000. The E&P basis of the asset using the alternative depreciation system was $175,000. Compute the company's current E&P Note: Negative amount should be indicated with a minus sign. Taxable income Federal income taxes E&P loss from sale of asset Regular tax gain from sale of asset Current E&P $ 1,000,000 (210,000) $ 700,000
Chapter1: Financial Statements And Business Decisions
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Taxable income
Federal income taxes
E&P loss from sale of asset
Regular tax gain from sale of asset
Current E&P
$
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$
1,000,000
(210,000)
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Gator Incorporated reported taxable income of $1,000,000 this year and paid federal income taxes of $210,000. Included in the
company's computation of taxable income is gain from the sale of a depreciable asset of $50,000. The income tax basis of the asset
was $100,000. The E&P basis of the asset using the alternative depreciation system was $175,000. Compute the company's current
E&P
Note: Negative amount should be indicated with a minus sign.
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