Brown Corporation, an Accrual Basis Corporation, Has Taxable Income of $150,000

Essay

Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.
? Brown incurred a $65,000 capital loss from the sale of stock. Because Brown had no capital gains this year, none of the loss is deductible.
? The corporation's Federal income tax liability is $41,750.
? Brown incurred $18,000 in nondeductible meal expenses.
? Brown uses the LIFO method when accounting for inventory. This year, the company's LIFO
recapture amount increased by $3,000.
? Brown claimed a dividends received deduction of $1,500. What is Brown's current E & P for the year?