For each of the following items, indicate whether the item will increase, decrease, or cause no change
Question:
a. Operating profit
b. Dividend income received from domestic corporation
c. Interest income earned on corporate bond held as an investment
d. Life insurance proceeds paid on death of corporate officer
e. Long-term capital gain
f. Sec. 1231 loss
g. Sec. 1245 gain (depreciation recapture)
h. Charitable contributions
i. Fines paid for having overweight trucks
j. Depreciation
k. Pension plan contributions for employees
l. Salary paid to owner
m. Premiums paid on life insurance policy in Part d
n. Distribution of money (but not exceeding current year’s earnings)
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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