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.
-Additional first-year (bonus) depreciation deduction claimed in 2019.
A)Increase
B)Decrease
C)No effect

Question

Quizplus · Accepted Answer

The additional first-year (bonus) depreciation deduction claimed in 2019 would increase current Earnings and Profits (E&P) because for E&P calculations, this deduction would be added back to taxable income, effectively increasing E&P.

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