The ABC Company reported taxable income of $500,000 in 2018. The company paid $105,000 in federal taxes for 2018. If you start with taxable income of $500,000 what adjustment will be necessary for the $105,000 for purposes of calculating E&P?

a. a $105,000 addition. b. a $105,000 deduction. c. no adjustment. d. none of the above.

ABC Company reported taxable income of $500,000 in 2018. This amount does not include a $5,000 nondeductible (for tax purposes) meal expense. If you start with taxable income of $500,000 what adjustment will be necessary for the $5,000 meal expense for purposes of calculating E&P? a. a $5,000 addition. b. a $5,000 deduction. c. no adjustment. d. none of the above. 2 points QUESTION 22 ABC Company reported taxable income of $500,000 in 2018. This amount included a $15,000 deduction for tax depreciation. The companys depreciation for E&P purposes was $12,000. If you start with taxable income of $500,000 what adjustment will you need to make for depreciation for purposes of calculating E&P?

a. a $3,000 addition. b. a $3,000 deduction. c. a $12,000 deduction. d. a $12, addition. e. none of the above.

ABC Company reported current year E&P of $400,000 in 2018. This amount included a $10,000 capital gain and $16,000 capital loss. If you start with E&P of $400,000 what adjustment will you need to make for capital losses for purposes of calculating taxable income?

a. a $6,000 addition. b. a $6,000 deduction. c. no adjustment. d. none of the above.

ABC Company reported current year E&P of $400,000 in 2018. This amount included a $12,000 expense for payment of an OSHA violation fine. If you start with E&P of $400,000 what adjustment will you need to make for the fine for purposes of calculating taxable income?

a. a $12,000 addition. b. a $12,000 deduction. c. no adjustment. d. none of the above.

ABC Company reported current year E&P of $400,000 in 2018. This amount included $100,00 of life insurance proceeds the company received because of the death of one of its officers (the company was the beneficiary of the officers life insurance policy). If you start with E&P of $400,000 what adjustment will you need to make for the life insurance proceeds for purposes of calculating taxable income?

a. a $100000 addition. b. a $100,000 deduction. c. no adjustment. d. none of the above.

ABC Company reported current year E&P of $400,000 in 2018. This amount included $4,000 of interest from municipal bonds. If you start with E&P of $400,000 what adjustment will you need to make for the municipal bond interest for purposes of calculating taxable income?

a. a $4,000 addition. b. a $4,000 deduction. c. no adjustment. d. none of the above.

ABC Company reported current year E&P of $400,000 in 2018. This amount included a state income tax expense of $7,000. If you start with E&P of $400,000 what adjustment will you need to make for the state income tax expense for purposes of calculating taxable income?

a. a $7,000 addition. b. a $7,000 deduction. c. no adjustment. d. none of the above.