Match Each of the Following Terms with the Appropriate Description

question 48

Short Answer

Match each of the following terms with the appropriate description, in the state income tax formula.
a.Addition modification
b.Subtraction modification
c.No modification
-Federal R & D credit

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Definitions:

Interest Expense

Expenses that a company faces for using borrowed capital, usually shown on the profit and loss statement.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities. It represents the ownership interest of the shareholders in a company.

Total Liabilities

The sum of all financial obligations or debts a company owes, including loans, accounts payable, mortgages, and any other monies due to external parties.

Total Assets

The sum of all assets owned by an entity, including both current and noncurrent assets.