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

question 86

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