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 2016.
-Meal and entertainment expenses not deducted in 2016 because of the 50% limitation.

Question

Quizplus · Accepted Answer

Since meal and entertainment expenses were not deducted in 2016, this means they were not included in the calculation of taxable income for that year. Therefore, when adjusting for E & P purposes in 2016, these expenses would decrease current E & P.

Using the Legend Provided, Classify Each Statement Accordingly