Indicate by I If the Following Is an Increase in Taxable

question 27

Short Answer

Indicate by I if the following is an increase in taxable income to determine current earnings and profits or D if it is a decrease in taxable income in determining current earnings and profits.
_____ a. Corporate charitable contributions in excess of 10 percent limit.
_____ b. A fine for monopolistic practices
_____ c. Net operating loss carryovers
_____ d. Life insurance proceeds
_____ e. Expenses related to tax-exempt income
_____ f. Capital loss carryovers
_____ g. Dividends received deduction
_____ h. Federal income tax refunds
_____ i. Disallowed losses on sales to related parties
_____ j. Section 179 expense in excess of allowable depreciation
a. Insurance premium on key-person life insurance.

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Definitions:

Managers

Individuals responsible for planning, organizing, leading, and controlling resources to achieve organizational goals.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Profit Centers

Divisions or departments within a business that are treated as separate entities for the purpose of financial reporting, with their own revenues and expenses.

Sales

Transactions between a seller and a buyer where goods or services are exchanged for money.