Paid Federal Income Tax Of $150,000 And Paid

A. 400,000. B. 410,000. C. 320,000. D. 475,000. E. None of the above. Corporations Distributions Not in Complete Liquidation 19-15 Taxable income is reduced by Federal income tax paid, the related party loss, and the nondeductible fine. Eighty percent of the 179 expense is added back (500,000 150,000 20,000 10,000 80,000 400,000). The involuntary conversion has no effect since realized gain was not recognized. 60.Platinum Corporation, a calendar year taxpayer, has taxable income of 500,000. Among its transactions for the year are the following Collection of proceeds from insurance policy on life of corporate officer (in excess of cash surrender value) 75,000 Realized gain (not recognized) on an involuntary conversion 10,000 Nondeductible fines and penalties 40,000 Disregarding any provision for Federal income taxes, Platinum Corporations current EP is A. 455,000. B. 535,000. C. 545,000. D. 625,000. E. None of the above. To determine E P, the Federal income tax is subtracted from taxable income and the net operating loss carryforward is added. The gain recognized currently from the prior years installment sale is subtracted. The excess of depreciation deducted on the tax return over ADS depreciation and the interest from Iowa state bonds are added. 61.Which of the following statements