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Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments...

Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each qu

Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2019, for a total of $3,200. Tungsten filed its 2019 tax return in 2020 and the return showed a tax liability $4,200. When it filed its tax return in 2020, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P? Increase by $1,000 in 2019. Increase by $1,000 in 2020. Decrease by $1,000 in 2019. Decrease by $1,000 in 2020. None of these.
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The additional payment of $1,000 would decrease Tungsten’s E & P
E & P would be decreased when the actual payment of tax is made.
Tungsten’s E & P would Decrease by $1,000 in 2020
Option D is correct
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Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments...
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