Abbot Corporation reported a net operating loss of $400,000 in year 1, which the corporation elected to carryforward to year 2. Included in the computation was regular depreciation of $100,000 (E&P depreciation is $40,000), and a dividends received deduction of $15,000. The corporation's current earnings and profits for year 1would be:
A) $(325,000)
B) $(340,000)
C) $(400,000)
D) $(355,000)

Question

Quizplus · Accepted Answer

$(400,000) + $60,000 - 15,000 = $(355,000).

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