Cpa 02142 pii nov 93 45 page 3 22 2009 devrybecker

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Unformatted text preview: ot deductible for tax purposes $140,000 + 40,000 180,000 50% × $50,000 meals and entertainment expenses not deductible for tax purposes, but deductible from book income Taxable income + 25,000 $205,000 Choice "b" is incorrect. 50% of the $50,000 meals and entertainment expenses are disallowed for tax purposes. Choice "c" is incorrect. The $40,000 federal income tax expense is not deductible for tax purposes. Choice "d" is incorrect. The $40,000 federal income tax expense and 50% of the $50,000 meals and entertainment expenses are not deductible for tax purposes. CPA-02140 Type1 M/C A-D Corr Ans: D PM#66 R 3-01 49. CPA-02140 PII Nov 93 #43 Page 32 When computing a corporation's income tax expense for estimated income tax purposes, which of the following should be taken into account? a. b. c. d. Corporate tax credits No No Yes Yes Alternative minimum tax No Yes No Yes CPA-02140 Explanation Choice "d" is correct. When computing a corporation's income tax expense for estimated income tax purposes, both corporate tax cr...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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