Mystical Corporation is a calendar year, accrual basis corporation. For 2022, the corporate tax returns reports $575,920 in taxable income. In addition, the corporation provides the following information:
Federal Income tax liability paid
Tax-exempt interest income
Entertainment Expense
Excess of capital losses over capital gains
MACRS cost recovery deduction
E&P depreciation (straightline depreciation using ADS)
Section 179 expense elected and deducted during 2020 for regular tax purposes
Dividends received from domestic corporations (less than 20% owned)
$ 120,940
6,250
4,750
14,000
79,000
56,000
40,000
25,000
Using the readings from this module, and concept summary 5.1 in the book, calculate Mystical Corporations E&P for the calendar year.
