Transaction Taxable Income Increase (Decrease) E&P Incr

Transaction
Taxable Income Increase (Decrease)
E&P Increase
1.0 Realized gain of $50000 on involuntary
conversion of building ($30000 of gain is recognized)
2. Mining exploration costs incurred on June 1 of
the current year; $24000 is deductible from
current-year taxable income
3. Sale of equipment to unrelated third party
for $300000; basis is $200000 (no election out
of installment method; no payments are received
in the current year).
4. Dividends of $35000 received from 5%-owned
corporation together with dividends received
deduction (assume taxable income limit does not apply).
5. Domestic production activities deduction of
$55000 is claimed in current year.
6. Section 179 expense deduction of $45000 in current year.
7. Impact of current-year section 179 expense
deduction for previous item in succeeding year.
8. MACRS depreciation of $80000. ADS depreciation
would have been $88000.
9. Federal income taxes paid in the current year of $52000
Attachments: