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.
-Dividends received deduction.
A)Increase
B)Decrease
C)No effect

Question

Quizplus · Accepted Answer

The dividends received deduction would increase current Earnings and Profits (E&P) because it is an item that reduces taxable income but does not reduce E&P.

Using the Legend Provided, Classify Each Statement Accordingly