a$.$ True

b$.$ False

$9.$ When computing current E & P$,$ taxable income must be adjusted for the deferred gain in a $1031$ like exchange.

a$.$ True

b$.$ False

$10.$ An increase in the LIFO recapture amount must be added to taxable income to determine $E$ & $P.$

a$.$ True

b$.$ False

$11.$ Use of MACRS cost recovery when computing taxable income does not require an E & P adjustment.

a$.$ True

b$.$ False

$12.$ No E & P adjustment is required for regular tax gains under the installment method.

a$.$ True

b$.$ False

$13.$ A corporation borrows money to purchase State of Texas bonds. The interest on the loan has no imp either taxable income or current E & P$.$

a$.$ True

b$.$ False

$14.$ Federal income tax paid in the current year must be subtracted from taxable income to determine E $8$

a$.$ True

b$.$ False

$15.$ To determine current E & P$,$ taxable income must be increased for any domestic production activities deduction.

a$.$ True

b$.$ False

$16.$ Nondeductible meal and entertainment expenses must be subtracted from taxable income to determi current E & P$.$

a$.$ True

b$.$ False

$17.$ The dividends received deduction has no impact on E & P$.$

a$.$ True

b$.$ False

$18.$ A realized gain from an involuntary conversion under $1033$ that is not recognized for income tax pur has no effect on E & P$.$

a$.$ True

b$.$ False

$19.$ In the current year, Carnation Corporation has a $179$ expense of $$20,000.$ As a result, in the current taxable income must be increased by $$16,000$ to determine current E & P$.$

a$.$ True

b$.$ False

$20.$ A deficit in current $E$&$P$ is treated as occurring ratably during the year, unless the taxpayer can shou otherwise.

a$.$ True

b$.$ False

$21.$ When current E & P has a deficit and accumulated $E$&$P$ is positive, the two accounts are netted at th of the distribution. If a positive balance results, the distribution is a dividend to the extent of the balance.