Computing Current E&P (3of3) Plus or minus Income deduction items that must be recomputed when computing E&P Plus Deductions that reduce taxable income but are not allowed in computing E&P Minus Expenses losses that are not deductible in computing taxable income but that reduce E&P Equals current E&P(or current E&P deficit 88 Computing Current E&P (3 of 3) Plus or minus – Income & deduction items that must be recomputed when computing E&P Plus – Deductions that reduce taxable income but are not allowed in computing E&P Minus – Expenses & losses that are not deductible in computing taxable income but that reduce E&P Equals current E&P (or current E&P deficit)