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.
-Expenses related to tax-exempt income

Question

Quizplus · Accepted Answer

Expenses related to tax-exempt income are not deductible for tax purposes, so they are added back to book income to determine taxable income.

Designate by an a If the Item Would Be an Addition