Which of the following are subtractions from taxable income in computing current E&P?
A)Federal income taxes paid
B)Current charitable contributions in excess of 10 percent limitation
C)Current-year net capital loss
D)All of the choices are subtractions from taxable income in computing current E&P.

Question

Quizplus · Accepted Answer

All of the choices listed are subtractions from taxable income in computing current E&P. Federal income taxes paid and current-year net capital loss are deductible expenses for tax purposes and therefore reduce taxable income. Current charitable contributions in excess of 10 percent limitation are also deductible for tax purposes and are added back to taxable income in computing E&P.

Which of the Following Are Subtractions from Taxable Income in Computing