Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January 1, Year 2? A. $321, 500. B. $350,000. C. $346, 500 D. $189,750
Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January 1, Year 2? A. $321, 500. B. $350,000. C. $346, 500 D. $189,750
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
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A.2
Transcribed Image Text:As of January 1, Year 1, Braddock, a calendar - year, accrual - method
corporation, had accumulated earnings and profits of $225,000. For its
Year 1 tax year, Braddock's books and records reflect the following: Taxable
income per return $150, 000 Business meals in excess of 50% limitation
3,500 Demolition of a building 90, 000 Dividends paid 25,000 Federal
income taxes per book and return 41, 750 Political contributions 25,000
Based on the above, what is the amount of Braddock's accumulated
earnings and profits as of January 1, Year 2? A. $321, 500 B.$350,000.
C. $346, 500. D. $189,750
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