Pheasant Corporation Ended Its First Year of Operations with Taxable

question 88

Multiple Choice

Pheasant Corporation ended its first year of operations with taxable income of $225,000. At the time of Pheasant's formation, it incurred $50,000 of organizational expenses. In calculating its taxable income for the year, Pheasant claimed an $8,000 deduction for the organizational expenses. What is Pheasant's current E & P?

• A) $175,000.
• B) $183,000.
• C) $225,000.
• D) $233,000.
• E) None of the above.