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.
-Bad debt expense in excess of the addition to bad debt reserves

Question

Quizplus · Accepted Answer

Bad debt expense in excess of the addition to bad debt reserves is a subtraction from book income in determining taxable income because it is a non-deductible expense for tax purposes.

Designate by an a If the Item Would Be an Addition