Tern Corporation, a Cash Basis Taxpayer, Has Taxable Income of $500,000

question 172

Multiple Choice

Tern Corporation, a cash basis taxpayer, has taxable income of $500,000 for the current year. Tern elected $25,000 of § 179 expense. It also had a related party loss of $20,000 and a realized (not recognized) gain from an involuntary conversion of $75,000. It paid Federal income tax of $150,000 and paid a nondeductible fine of $10,000. Tern's current E & P is:

• A) $415,000.
• B) $350,000.
• C) $340,000.
• D) $320,000.
• E) None of the above.

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Definitions:

Certified Nursing Assistant

A person who has received certification to help patients with healthcare needs under the supervision of a Registered Nurse or a Licensed Practical Nurse.

Client Outcome

The result or impact of services provided, measured in terms of the client's health, well-being, or satisfaction.

Central Venous Catheter

A tube inserted into a large vein in the neck, chest, or groin to administer medication or fluids, or for measuring central venous pressure.

Postoperative Phlebitis

Inflammation of a vein following surgery, often presenting with symptoms such as pain, swelling, and redness.