Match Each of the Following Terms with the Appropriate Description

question 96

Multiple Choice

Match each of the following terms with the appropriate description in the state income tax formula. Apply the
UDITPA rules in your responses.
-State-level NOL.

• A)Addition modification
• B)Subtraction modification
• C)No modification

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Definitions:

Income Potential

The maximum amount of money someone can earn or a business can generate under current conditions.

Dead Stock

Unsold goods that have been in inventory for a long time and are not expected to be sold due to their obsolescence or lack of demand.

Supplier Relationships

Supplier relationships pertain to the interactions and dealings between a business and its suppliers, involving the negotiation of terms, management of supply, and collaboration for mutual benefit.

Inventory

The total amount of goods or materials held in stock by a company or business.