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

question 97

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 expensing under §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) ($330,000).
• C) ($400,000).
• D) ($490,000).

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