Discussion Question $5-1($LO$.2)$

In determining Blue Corporation's current earnings and profits $($E & P$)$ for $2024,$ how should taxable income be adjusted as a result of the following transactions?

Select either "Increase", "Decrease" or "Not be affected", whichever is applicable.

$$Increase $/$ Decrease

Not be Affecteda. $$A capital loss carryover from $2023,$ fully used in $2024.$

IncreaseDecreaseNot be affected

b$.$Nondeductible meal expenses in $2024.$

IncreaseDecreaseNot be affected

c$.$Interest on municipal bonds received in $2024.$

IncreaseDecreaseNot be affected

d$.$Nondeductible lobbying expenses in $2024.$

IncreaseDecreaseNot be affected

e$.$Loss on a sale between related parties in $2024.$

IncreaseDecreaseNot be affected

f$.$Federal income tax refund received in $2024.$

IncreaseDecreaseNot be affected