During the semester we learned the importance of reconciling from book income to taxable income, and the important of understanding the debits and credits, especially as we are accountants!

I would like you to show how you understand to do the calculations by explaining to me the following:

1. Please identify whether the item is a debit or credit for financial statement purposes (debit or credit)=

2. Whether the tax treatment is the same as for book purposes- yes or no

3. confirm the appropriate tax treatment for the item (1 points) and why. Is the item taxable, exempt, fully deductible, partially deductible, non -deductible?

4. The amount for taxable income purposes. For example, if it is non-refundable then the amount would be $0 of expense.