Reference no: EM132877400

Question - Boilermaker Inc. reported taxable income of $870,000 this year and paid federal income taxes of $182,700. Not included in the company's computation of taxable income is tax-exempt income of $37,000, disallowed meals and entertainment expenses of $33,250, and disallowed expenses related to the tax-exempt income of $3,200. Boilermaker deducted depreciation of $136,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $64,500. Compute the company's current E&P.