Question

34. 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     

35. Omron Corporation has the following income and expenses for the tax year:

Gross profit on sales:	$150,000
Expenses:	500,000
Dividends received from less-than-20%-owned domestic corporations:	50,000

What is Omron's net operating loss?

A) $500,000

B) $494,000

C) $325,000

D) $300,000

36. Identify which of the following statements is true.

A) The charitable contribution deduction is computed after the deduction for an NOL.

B) The charitable contribution deduction is computed after the dividends-received deduction.

C) The NOL deduction claimed by a corporation must be taken after the dividends-received deduction.

D) All of the above are false.

Answer 1

If you have any doubts please comment on the answer.