Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2017.

a.

Increase

b.

Decrease

c.

No effect

- a. b. c.	Gain on installment sale in 2017 deferred until 2018.
- a. b. c.	Interest received from municipal bonds in 2017.
- a. b. c.	Federal income tax refunds from tax paid in prior years.
- a. b. c.	Loss on sale between related parties in 2017.
- a. b. c.	Meal and entertainment expenses not deducted in 2017 because of the 50% limitation.
- a. b. c.	Cash dividends distributed to shareholders in 2017.
- a. b. c.	Gain realized, but not recognized, in a like-kind exchange transaction in 2017.
- a. b. c.	Domestic production activities deduction claimed in 2017.
- a. b. c.	Premiums paid on key employee life insurance policy (assume no increase in cash surrender value of policy) in 2017.
- a. b. c.	Section 179 expense in second year following election.