Which of These Items Is Not an Adjustment to Taxable

question 59

Multiple Choice

Which of these items is not an adjustment to taxable income or net loss to compute current E&P?

• A)Dividends received deduction.
• B)Tax-exempt income.
• C)Net capital loss carryforward utilized in the current year from the prior-year tax return.
• D)Refund of prior-year taxes for an accrual-method taxpayer.

---

Definitions:

Organic

Pertaining to or derived from living organisms; in agriculture, involving food produced without the use of synthetic pesticides or fertilizers.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit from operations, often involving minimizing costs and maximizing revenues.

Negative Externality

A negative externality exists when a product or decision results in a negative effect on a third party not directly involved in the transaction.