In Determining a Corporation's Taxable Income for State Income Tax

question 78

Multiple Choice

In determining a corporation's taxable income for state income tax purposes, which of the following does not constitute a subtraction from Federal income?

• A) Interest on U.S. obligations.
• B) Expenses that are directly or indirectly related to state and municipal interest that is taxable for state purposes.
• C) The amount by which the state depreciation deduction exceeds the corresponding Federal amount.
• D) The amount by which the Federal depreciation deduction exceeds the corresponding state amount.

---

Definitions:

Ointments

Ointments are thick, greasy medicinal substances applied topically to the skin to provide moisturization, protection, or deliver specific medication.

Lotions

Liquid or semi-liquid topical preparations used for skin care, intended to moisturize, protect, or medicate the skin.

Chemotherapeutic

Relating to chemotherapy, the use of chemical substances to treat disease, especially cancer.

Infectious Organism

Microorganisms such as bacteria, viruses, fungi, and parasites that can cause diseases or infections.