Greenwich Corporation reported a net operating loss of $800,000 in year 1, which the corporation elected to carryforward to year 2. Not included in the computation was a disallowed fine of $50,000, life insurance proceeds of $500,000, and a current year charitable contribution of $10,000 that will be carried forward to year 2. The corporation's current earnings and profits for year 1 would be:
A) $(250,000)
B) $(260,000)
C) $(300,000)
D) $(360,000)

Question

Quizplus · Accepted Answer

$(800,000) - $50,000 + $500,000 - $10,000 = $(360,000).

Greenwich Corporation Reported a Net Operating Loss of $800,000 in Year