Brown Corporation, an Accrual Basis Corporation, Has Taxable Income of $150,000

question 12

Essay

Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.
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Brown incurred a $65,000 capital loss from the sale of stock. Because Brown had no capital gains this year, none of the loss is deductible.
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The corporation's Federal income tax liability is $41,750.
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Brown incurred $18,000 in nondeductible meal and entertainment expenses.
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Brown uses the LIFO method when accounting for inventory. This year, the company's LIFO recapture amount increased by $3,000.
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Brown claimed a domestic production activities deduction under § 199 of $1,500.
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What is Brown's current E & P for the year?

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Definitions:

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, wherein the promisee's intention is to provide a benefit to the creditor beneficiary.

Intended Beneficiary

An individual or entity that is not a direct party to a contract but stands to benefit from its performance.

Rights

Legal, social, or ethical principles of freedom or entitlement.

Contract

A legally binding agreement between two or more parties that delineates the terms of their relationship and obligations to each other.