McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 7

Paladin, Inc.reported taxable income of $1,000,000 in 2011 and paid federal income taxes of $340,000.The company reported a capital gain from sale of investments of $150,000, which was partially offset by a $100,000 net capital loss carryover from 2010, resulting in a net capital gain of $50,000 included in taxable income.Compute the company's current E P for 2011.