Answer:
corporation current earning and profits = $737000
Explanation:
given data
taxable income = $1,200,000
paid federal income taxes = $408,000
entertainment expenses = $25,000
tax-exempt interest = $20,000
net capital loss = $50,000
solution
we get here corporation current earning and profits that will be as
corporation current earnings and profits = taxable income - paid federal income taxes - entertainment expenses + tax-exempt interest - net capital loss ................1
put here value we get
corporation current earning and profits = $1,200,000 - $408,000 -$25,000
+ $20,000 - $50,000
corporation current earning and profits = $737000
