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.
-Charitable contribution carryforward deducted in the current year.
A)Increase
B)Decrease
C)No effect

Question

Quizplus · Accepted Answer

Charitable contribution carryforwards deducted in the current year would increase current Earnings and Profits (E&P) because they are deductions for tax purposes but not for E&P calculations, thus reversing them adds back to E&P.

Using the Legend Provided, Classify Each Statement Accordingly