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Unformatted text preview: Water paid fines and penalties of $6,000 that were not deducted in computing taxable income In computing this year’s taxable income, Water deducted a $20,000 NOL carryover from a prior tax year. Water claimed a $10,000 U.S. production activities deduction Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed for E&P purposes. Assume a 34% corporate tax rate. What is Water’s current E&P for the year? Answer: It would be $370,000....
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This note was uploaded on 10/04/2011 for the course ACCOUNTING AC 430 taught by Professor Johndavis during the Spring '09 term at Kaplan University.
- Spring '09