Outline the computation of current E&P, including two examples for each adjustment.

What will be an ideal response?


axable income
Plus: income excluded from taxable income (e.g., tax-exempt interest, life insurance proceeds)
Plus: income deferred to a later year when computing taxable income (e.g., installment sales, income reported on percentage of completion method)
Plus or minus: income and deduction items that must be recomputed when computing E&P
(e.g., excess depreciation over straight-line, percentage depletion in excess of cost depletion).
Plus: deductions not allowed in computing E&P (e.g., NOL deduction, dividends-received deduction)
Minus: expenses and losses not deductible in computing taxable income (e.g., federal
income taxes, nondeductible political contributions)
Equals: current E&P (or E&P deficit).

Business

You might also like to view...

The question has two parts; be sure to complete both. First, summarize Michael Porter's model for industry analysis, explaining each of the five primary competitive forces. Next, imagine you are the CEO of The Big Ram, a company that sells ramen noodles. Give an example of each of the five primary competitive forces in The Big Ram's environment.

What will be an ideal response?

Business

Field experiments have some advantages over laboratory experiments. The field experiment offers a high degree of control because it isolates the experiment in a carefully monitored environment

Indicate whether the statement is true or false

Business

The firm's purpose for holding certain securities may change, requiring it to transfer securities from one category to another. The firm transfers the securities at _____ at the time of the transfer

a. future value b. net realizable value c. amortized cost d. fair value e. present value of future cash flows

Business

Which of the following is NOT involved in the function of life insurance?

A) maintenance of an estate B) creation of an estate C) distribution of an estate D) all of the above

Business