Question - Charlotte Corporation is a cash basis taxpayer and reported the following income and expenses in 2014.
Services Income $550,000
Wages to employees 100,000
Tax Exempt Interest Income 25,000
Short-Term Loss on Stock Sale (30,000)
Federal Taxes Paid 150,000
Penalties 1,000
Charlotte also purchased $100,000 of furniture on 1/1/2014 but did not elect bonus depreciation or 179 expenses. The property has a 10 year ACRS life. Determine Charlotte's taxable income and current E&P?