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Required informationProblem 14-44 (LO 14-2)The following information applies to the questions displayed below.Volunteer Corporation reported taxable income of $500,000 from operations this year. Thecompany paid federal income taxes of $105,000 on this taxable income. During the year, thecompany made a distribution of land to its sole shareholder, Rocky Topp. The land's fair marketvalue was $75,000 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed amortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 atthe beginning of the year.Problem 14-44 Part cc. Compute Volunteer's accumulated E&P at the beginning of next year.Accumulated E & P

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Required information
Problem 14-44 (LO 14-2)
The following information applies to the questions displayed below.
Volunteer Corporation reported taxable income of $500,000 from operations this year. The
company paid federal income taxes of $105,000 on this taxable income. During the year, the
company made a distribution of land to its sole shareholder, Rocky Topp. The land's fair market
value was $75,000 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a
mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at
the beginning of the year.
Problem 14-44 Part c
c. Compute Volunteer's accumulated E&P at the beginning of next year.
Accumulated E & P
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Required information Problem 14-44 (LO 14-2) The following information applies to the questions displayed below. Volunteer Corporation reported taxable income of $500,000 from operations this year. The company paid federal income taxes of $105,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The land's fair market value was $75,000 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at the beginning of the year. Problem 14-44 Part c c. Compute Volunteer's accumulated E&P at the beginning of next year. Accumulated E & P

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Step 1

Calculating the value of total taxable income and federal income tax. We have,

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Step 2

Calculating the value of current E&P ...

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