Using the Legend Provided, Classify Each Statement Accordingly

question 3

Short Answer

Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to determine current E & P for 2008.
a.Increase
b.Decrease
c.No effect
-Nontaxable stock dividend distributed to shareholders.

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Definitions:

Doctrine of Unconscionability

A legal principle that contracts with terms that are excessively unfair or oppressive can be found invalid or modified by a court.

Implied Warranties

Legal guarantees implied by law regarding the satisfactory quality and fit for purpose of goods, even if not expressly stated by the seller.

Remedy Limitation

Restrictions placed on the types or extent of legal remedies available to a plaintiff in a lawsuit, often stipulated in contracts.

Recovery of Damages

The process by which a victim of a breach of contract or tort seeks financial compensation or restitution for loss or injury.