Matching

Using the legend provided, classify each statement accordingly. In all cases, assume that book income is being

adjusted to arrive at taxable income for $2023.$

a$.$ Increase

b$.$ Decrease

c$.$ No effect

Gain on installment sale in $2010$ deferred until $2023.$

Nondeductible fines and penalties incurred in $2023.$

Federal income tax refunds from tax paid in prior years.

$50\%$ of meal and entertainment expenses recognized in $2023.$

Cash dividends distributed to shareholders in $2023.$

Gain realized, but not recognized, in a like$-$kind exchange transaction in $2023.$

Domestic production activities deduction available in $2023.$

Premiums paid on key employee life insurance policy $($assume no increase in cash surrender value of policy$)$

in $2023.$

Section $179$ expense taken in year of the election $(2023).$

Penalties paid to state government for failure to comply with state law.

Dividends received deduction.

Interest on municipal bonds received in the current year.

Excess capital loss in year incurred.

State income tax paid in the current year.

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