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.
-Intangible drilling costs deducted currently.
A)Increase
B)Decrease
C)No effect

Question

Quizplus · Accepted Answer

Intangible drilling costs that are deducted currently for tax purposes but are not deductible for E&P calculations would increase current E&P because you would add back these expenses to taxable income to arrive at E&P.

Using the Legend Provided, Classify Each Statement Accordingly