Matching
Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2019.
-Federal income tax refunds from tax paid in prior years.
A)Increase
B)Decrease
C)No effect

Question

Quizplus · Accepted Answer

Federal income tax refunds from taxes paid in prior years are considered an item of income when received. Therefore, they would increase current Earnings and Profits (E&P) when adjusting taxable income to arrive at current E&P for the year.

Matching Using the Legend Provided, Classify Each Statement Accordingly. in All