Computing Current E&P (1of2) E&P computed on annual basis at end of tax year Generally e&P based on the corps economic income instead of taxable income Adjustments to taxable income for permanent timing differences including use of different depreciation methods Refer to Table c4-1 66 Computing Current E&P (1 of 2) E&P computed on annual basis at end of tax year Generally E&P based on the corp’s economic income instead of taxable income Adjustments to taxable income for permanent & timing differences including use of different depreciation methods Refer to Table C4-1