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Unformatted text preview: Available: A339/539 Quiz 03a: Earnings & Profits: 30 min Points Possible 10 Points Earned 8 Points Missed 2 Points Ungraded Score 80.0% 1. (T/F) A corporation that uses the cash method of accounting for tax purposes, but issues accrual method financial statements must use the accrual method in determining its current earnings and profits, although there may be some specific differences in the computations of taxable income and E&P. Response: FALSE Answer: FALSE Points: 1 / 1 2. (T/F) During the year, F Corporation sold a parcel of land that it purchased several years ago for $10,000. F received $20,000 in cash and an $80,000 note payable in eight annual installments beginning next year. F Corporation is eligible to use the installment method on the sale, and defers $72,000 of gain to future years. With respect to this sale, F must increase its E&P of the year of sale by years....
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This note was uploaded on 06/23/2009 for the course BUPA 539 taught by Professor Jamison during the Spring '09 term at IUPUI.
- Spring '09