Walloon, Inc. reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $210,000. The company reported a capital gain from sale of investments of $150,000, which was partially offset by a $40,000 net capital loss carryover from 20X2, resulting in a net capital gain of $110,000 included in taxable income. Compute the company's current E&P for 20X3.
What will be an ideal response?
$830,000
| Taxable income | $ | 1,000,000 | |
| Add: | |||
| NCL carryover from 20X2 | 40,000 | ||
| Subtract: | |||
| Federal income taxes | (210,000 | ) | |
| Current E&P | $ | 830,000 | |
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Indicate whether the statement is true or false.
Duncan Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 300 souvenir attraction disks, costing $3 each, used in the production of key chains. During the year Duncan Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of souvenir disk raw materials inventory at December 31.
What will be an ideal response?
Which one of the following conditions favors a level strategy for manufacturing firms?
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