Which of the following items is a temporary difference between tax income and financial accounting income?

A) production activities deduction

B) proceeds on life insurance on a key executive

C) dividends-received deduction

D) depreciation

Identify which of the following statements istrue.

A) A corporate NOL can be carried back two years and forward 15 years.

B) An NOL incurred before 2018 carries forward 20 years and is not subject to the 80% of taxable income limitation.

C) In computing an NOL for the current year, a deduction is allowed for NOLs from previous years.

D) All of the above are false.

. Dino Corporation reports taxable income of $500,000 on its tax return. Given the following information from the corporation's records, determine Dino's net income per its financial accounting records.

Deduction for federal income taxes per books

$105,000

Depreciation claimed on the tax return

80,000

Depreciation reported on the financial accounting books

120,000

Tax Exempt Interest on Municipal Bonds

10,000

A) $365,000

B) $380,000

C) $500,000

D) $605,000

Identify which of the following statements isfalse.

A) Brown Corporation owns 60% of Clark Corporation and 65% of Davis Corporation. Davis Corporation owns 10% of Clark Corporation, and Clark Corporation owns 10% of Davis Corporation. The remaining stock is owned by an individual shareholder. Brown, Davis, and Clark Corporations are a parent-subsidiary controlled group.

B) There are three categories of control groups: parent-subsidiary, brother-sister, and combined.

C) The controlled group test is applied on December 31.

D) A controlled group must apportion certain tax benefits among its members.