Abbot Corporation Reported a Net Operating Loss of $400,000 in 20X3

question 53

Multiple Choice

Abbot Corporation reported a net operating loss of $400,000 in 20X3, which the corporation elected to carryforward to 20X4. Included in the computation of the loss was regular depreciation of $100,000 (E&P depreciation is $40,000) , first year expensingunder §179 of $50,000, and a dividends received deduction of $10,000. The corporation's current earnings and profits for 20X3 would be:

• A) ($290,000).
• B) ($490,000).
• C) ($330,000).
• D) ($400,000).

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Definitions:

Economics Grade

A measurement or assessment of a student's understanding and proficiency in the subject of economics, typically given as part of an academic evaluation.

Marginal Benefit

The increased pleasure or advantage received from the consumption or creation of an additional unit of a good or service.

Marginal Benefit

The supplementary enjoyment or value derived by a person upon consuming an extra unit of a particular good or service.

Marginal Cost

The cost of producing one additional unit of a good or service.