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.
-Penalties paid to state government for failure to comply with state law.
A)Increase
B)Decrease
C)No effect

Question

Quizplus · Accepted Answer

Penalties paid to state government are not deductible for tax purposes, so they decrease the current Earnings and Profits (E & P).

Using the Legend Provided, Classify Each Statement Accordingly