Designate by an A if the item would be an addition to book income in determining taxable income; designate by an S if the item would be a subtraction from book income in determining taxable income.
-Tax-exempt bond interest income

Question

Quizplus · Accepted Answer

Tax-exempt bond interest income is already included in book income but is not taxable. Therefore, it needs to be subtracted from book income to determine taxable income.

Designate by an a If the Item Would Be an Addition