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Advocard [28]
3 years ago
10

Cardinal Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds a 10%

interest. Cardinal also receives interest income of $35,000 from municipal bonds. (The municipality used the proceeds from the bond issue to construct a library.) Cardinal borrowed funds to purchase the municipal bonds and pays $20,000 of interest on the loan. Excluding these items, Cardinal's taxable income is $500,000.
a) After these items are taken into account, what is Cardinal Corporation's taxable income?
b) If it's beginning balance this year in accumulated E & P is $150,000, then what is Cardinal Corporation's accumulated E & P at the start of next year?
Mathematics
1 answer:
Nitella [24]3 years ago
8 0
I think the answer is a but I’m not for sure
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(b)

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