An Expense That Is Deducted in Computing Net Income Per

question 20

True/False

An expense that is deducted in computing net income per books but not deductible in computing taxable income is a subtraction item on Schedule M-1.

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Definitions:

Sabbath Law

A law that prohibits the performance of certain activities on Sundays.

Contract Rescinded

The act of legally declaring a contract null and void, as if it never existed, usually due to misinformation, fraud, or mutual mistake.

Sabbath Day

A day set aside for rest and worship according to Jewish, Christian, and some other religions’ traditions, typically observed from sunset on Friday to sunset on Saturday in Judaism and on Sunday in Christianity.

Promissory Estoppel

A legal principle preventing a party from retracting a promise when the other party has reasonably relied on that promise and acted upon it, leading to a detriment.