Matching
Using the legend provided, classify each statement accordingly. In all cases, assume that book income is being
adjusted to arrive at taxable income for
a Increase
b Decrease
c No effect
Gain on installment sale in deferred until
Nondeductible fines and penalties incurred in
Federal income tax refunds from tax paid in prior years.
of meal and entertainment expenses recognized in
Cash dividends distributed to shareholders in
Gain realized, but not recognized, in a likekind exchange transaction in
Domestic production activities deduction available in
Premiums paid on key employee life insurance policy assume no increase in cash surrender value of policy
in
Section expense taken in year of the election
Penalties paid to state government for failure to comply with state law.
Dividends received deduction.
Interest on municipal bonds received in the current year.
Excess capital loss in year incurred.
State income tax paid in the current year.
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