Which of the following items would be added to a corporation's GAAP income to determine Net...

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Question

Which of the following items would be added to a corporation's GAAP income to determine Net...

Which of the following items would be added to a corporation's GAAP income to determine Net Income for Tax Purposes?

Choose the correct answer.

A.

a federal income tax refund

B.

terminal losses

C.

CCA that exceeds GAAP amortization

D.

50% of business meals and entertainment

business accounting

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Answer 1

Answer #1

50% of business meals and entertainment would be added to a corporation's GAAP income to determine Net Income for Tax Purposes.

Business meals and entertainment are deductible to the extent of 50% only. The remaining 50% must be added back to determine Net Income for Tax Purposes.

Option D is correct

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Answer 2

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