T11F-Chp-03-7-Schedule-M-Items -...

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525011797d8de07dd11ff6ea3cdc22a0352ae4e5.xls CORPORATE BOOK-TAX DIFFERENCES. Book income may differ from taxable income from many types of transactions. Permanent differences A. Some book income is never taxed for regular tax (AMT not relevant here). 1 Tax-exempt interest received on state and municipal obligations 2 Proceeds of life insurance carried by corporation on officers or key employees B. Some book expenses are never deductible on the tax return. 1 Expenses incurred in earning tax-exempt interest 2 Corporate payment of premiums for life insurance on officers or key employees 3 Fines and expenses resulting from a violation of law 4 Disallowed travel and entertainment costs 5 Political contributions 6 Federal income taxes per books, which is based on GAAP (SFAS No. 109) C. Some tax deductions are never reported as expenses in GAAP statements. 1 The dividends-received deduction 2 The U.S. production activities deduction 3 Percentage depletion of natural resources in excess of their cost
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This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

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