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Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2017.
a.Increase
b.Decrease
c.No effect
-Premiums paid on key employee life insurance policy (assume no increase in cash surrender value of policy) in 2017.
Capital Goods
Long-term assets such as buildings, machinery, and equipment used by businesses to produce goods and services.
Division of Labor
Division of labor is the assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.
Productivity
A measure of average output or real output per unit of input. For example, the productivity of labor is determined by dividing real output by hours of work.
Workers' Abilities
The skills, expertise, and competencies that employees possess, which contribute to their performance and productivity in the workplace.
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