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Oakland Corporation reported a net operating loss of $500,000 in 20X3 and elected to carry the loss forward to 20X4. Not included in the computation was a disallowed meals and entertainment expense of $20,000, tax-exempt income of $10,000, and deferred gain on a current year transaction treated as an installment sale of $250,000. The corporation's current earnings and profits for 20X3 would be:

Respuesta :

TomShelby

Answer:

-260,000    current earings and profits

Explanation:

From the taxable income we are going to adjust to get the current earnings and profits

-500,000     taxable income

-20,000       non-deductible expenses

+10,000       exempt taxes

+250,000    deferred gain

-260,000    current earings and profits

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