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

Exercise 26

During the current year, CRS Inc. reported the following tax-related information:
• $10,000 tax-exempt interest from public activity bonds issued before 2009.• $16,000 tax-exempt interest from private activity bonds issued before 2009.• $150,000 death benefit from life insurance policies on officer's lives.
• $6,000 70 percent dividends received deduction.
• $12,000 80 percent dividends received deduction.
• $50,000 bad debt expense.
• $20,000 amortization expense relating to organizational expenditures.
• $80,000 gain included in taxable income under the installment method (sale occurred in previous year).
What is CRS's current year ACE adjustment
$79,500 positive adjustment, computed as follows: