Hi everyone,

In Wiley there is a simulation-Corporate tax-(4). In the first spreadsheet, there are couple of numbers which I am not able to derive. If some one could please help out, I would really appreciate it. I got my test on Nov 17th.

I. In case 3, where there is accm E&P-(15000) and current E&P -8000 and a distribution of 10000, how is the accm E&P at beg of next yr -2010 calculated. My answer would be as per the formula.

Accm E&P at beg   -15000

Current E&P          ;  8000

Distributions         ;  -10000

Accm E&P at end   -17000.

But answer says in Wiley = -15000. No expln is mentioned.

Could some one please clarify.

In contn of above, in the same simulation there is calculation no.3 & 4 also, which is confusing. In order to find out the amount of dividend, there is some calc done which I am not familiar with.

If the accm E&P is 40000 and the current E&P (55000) is and the distribution is 15000, the dividend has been calculated as:

40000-[1/2 of 55000] = 12500 and and the remaining portion of (55000), ie. 27500 is treated as accm E&P at beg of 2010.

I am not able to understand this calc, ppl who are using wiley, have u come across this? Could you understand ?

If yes, request some clarification on this.

I am giving my REG on Nov 17th, Thursday. If anyone can help me out with this, it would help a lot.

Thanks,