During its tenth year of business (current year), Badger Cor…
During its tenth year of business (current year), Badger Corporation reported regular taxable income of $200,000. Badger has an accumulated E&P deficit of ($50,500) at the beginning of the year. Badger properly considered the following information in its tax-related computations: $23,000 interest from Madison City bonds. $50,000 interest from Apple Inc. bonds. $28,000 dividends received from Twitter Corp (Badger owns less than 1 percent of the stock). $70,000 regular tax depreciation ($73,000 E&P depreciation). $8,000 regular tax gain on disposition of assets ($8,800 E&P gain on disposition of assets). $10,000 charitable contribution ($6,000 from current year and $4,000 from prior year). $40,000 received from payoff of key person life insurance policy. Assuming a 21% corporate tax rate, what is Badger’s current E&P for the year? (Round to the nearest 0 and do not use $ signs. If the answer is a loss, place a negative sign, – , in front of the number. For example, ($3,211.52) should be entered as -3212)