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

question 24

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 Federal deduction for depreciation exceeds the depreciation deduction permitted for state tax purposes.
• D)The amount by which the state loss from the disposal of assets exceeds the Federal loss from such disposal.
• E)b and c

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Definitions:

NAFTA

The North American Free Trade Agreement, an accord among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

Yasir Arafat

A Palestinian political leader and Chairman of the Palestine Liberation Organization, known for his role in the Israeli-Palestinian conflict.

Yitzhak Rabin

The fifth Prime Minister of Israel, known for his efforts in the peace process with Palestine, including the signing of the Oslo Accords.

Gaza Strip

A small region on the eastern coast of the Mediterranean Sea that borders Egypt and Israel, known for its historic conflict and as a significant geographical area in the Israeli-Palestinian conflict.