Designate by an a If the Item Would Be an Addition

question 40

Short Answer

Designate by an A if the item would be an addition to book income in determining taxable income; designate by an S if the item would be a subtraction from book income in determining taxable income.
_____ a. Insurance premium on key-person life insurance.
_____ b. Tax-exempt bond interest income
_____ c. Tax depreciation in excess of book depreciation
_____ d. Fines and bribes
_____ e. Nondeductible portion of meals and entertainment
_____ f. Federal income tax
_____ g. Carryover of a charitable contribution from a prior year
_____ h. Increase in cash value of key-person life insurance
_____ i. Bad debt expense in excess of the addition to bad debt reserves
_____ j. Excess of book depreciation over tax depreciation
_____ k. Expenses related to tax-exempt income
_____ l. Excess capital losses over capital gains

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Definitions:

Cash Flow Hedge

A financial strategy to mitigate the risk of future cash flow fluctuations, typically related to variable interest rates, foreign exchange rates, or commodity prices.

India Rupee

The India Rupee (INR) is the official currency of India, used as the medium of exchange within the country.

Fair Value Hedge

A hedging strategy used to protect against changes in the fair value of assets or liabilities.

Account Payable

The amount of money owed by a company to its creditors for goods or services that have been delivered or used, but not yet paid for.