Which of the following statements is incorrect with respect to computing current E & P?

a.   All tax-exempt municipal bond interest income should be subtracted from taxable income.
b.   The dividends received deduction should be added back to taxable income.
c.   Current year charitable contributions in excess of the 10% of taxable income limit should be subtracted from taxable income.
d.   Federal income tax refunds received should be added to taxable income.
e.   None of the above statements are incorrect.

Expert Solution

The correct answer is option a. All tax exempt municipal bond interest income should be substracted from taxable income.

As One of the adjustments that will increase entity's E & P is additing back of tax-exempt income, which is generally not included while calculating taxable income, so the above statement is incorrect.

All tax-exempt bond interest income should be added to the income for computation of E & P.

ekkarill92 answered 1 year ago

Which of the following statements are true with respect to the P/E Ratio?

Ratios: Current Ratio: 3.6093 Quick Ratio: 2.1799 Times Interest Earned: 9.9143 ROE 16.48% ROA 12.01% Equity Multiplier 1.3714 Inventory Turnover 1.3489 The P/E (Price/Earnings) Ratio is defined as: P/E ratio = Price per Common Share / Net Income per Common Share. Which of the following statements are true with respect to the P/E Ratio? Select one: a. A P/E Ratio of 15 would tell us that each Common Stock is selling for 15 times the Net Income per common share...

74. Which of the following statements is incorrect? &nbsp

74. Which of the following statements is incorrect? A. β- hemolytic Streptococci show complete clearing around the colonies on Blood Agar. B. Stapylococci can be isolated on Phenyl Ethanol Agar and always ferment mannitol on Mannitol Salt Agar. C. Chocolate agar provides NAD and hemin thus supports the growth of Haemophilus influenzae D. Salmonella appears as yellow colonies with black centers on Salmonella-Shigella agar 75. Which of the following statements is incorrect? A. Typhoid fever is a systemic...

Which one of the following statements is incorrect?

Which one of the following statements is incorrect? 1) Scarcity is a universal phenomenon that arises because resources are limited 2) Microeconomics is the branch of economics which studies how individual decision-makers behave and interact with each other 3) Macroeconomics is the branch of economics which studies the functioning and performance of a society's economy as a whole (often with a focus on levels of and changes in aggregate measures such as the unemployment rate, inflation rate, and Gross Domestic Product growth rate). 4)...

Which of the following statements is incorrect? Select all that apply.

Which of the following statements is incorrect? Select all that apply. The eukaryotic ribosome uses both the 5' cap and the 3' tail to correctly position the ribosome on the initation codon GTP is hydrolyzed by aminoacyl-tRNA synthetases to prepare amino acids for attachment to tRNAs The peptidyl-transferase activity of the ribosome is catalyzed by one of the protein domains of the large ribosomal subunit The Shine-Dalgarno consensus sequence is located downstream of the initiation codon and base pairs with the 16S rRNA of...

Which of the following statements is INCORRECT regarding Master Budget?

Which of the following statements is INCORRECT regarding Master Budget? 1 Master budget is one type of operational budget 2. Master budget is focusing specific volume of business activity that is expected. 3 Budgeted balance sheet should be prepared before budgeted income statement. 4. Master budget starts from preparing sales budget.

Which of the following is incorrect? A. An implied share price which is above the current...

Which of the following is incorrect? A. An implied share price which is above the current share price indicates that the shares are selling at a discount. B. In an unlevered DCF, the WACC is the appropriate discount rate because we are discounting free cash flows that belong to all providers of capital. C. The DCF model assumes a constant WACC throughout. D. The terminal value has minimal impact in the calculation of enterprise value.

Which of the following statements about the autonomic nervous system is INCORRECT?

Which of the following statements about the autonomic nervous system is INCORRECT? A The preganglionic fibres in the parasympathetic division are usually long compared to the postganglionic fibres B The sympathetic division mediates responses that allow the body to respond to 'flight and fright' situations C The ganglia of the sympathetic division are usually close to the spinal cord D The adrenal medulla is a sympathetic ganglion E The parasympathetic nerves arise from the brain stem and the sacral region...

Which of the following statements is incorrect? The LRPC shifts when there is a change in...

Which of the following statements is incorrect? The LRPC shifts when there is a change in inflation expectations. The SRPC does not shift in the short run. The SRPC shifts during a stagflation. The LRPC shifts when there is a change in structural unemployment.

2. Which of the following statements is incorrect? a. The more detailed an RFQ is, the...

2. Which of the following statements is incorrect? a. The more detailed an RFQ is, the more accurate and comparable the quotes will be. b. Request for Information can be used in sourcing to help determine a supplier’s capabilities and financial health. c. RFQ responses can be used to form the buyer’s own Statement of Work. d. An RFQ can follow an RFP to help buyers to get more accurate quotes. 3. Below information is cited from the website of...

Which of the following statements concerning the separation of powers doctrine is incorrect

Which of the following statements concerning the separation of powers doctrine is incorrect?A. It promotes good governmentB. It involves three organs of state, namely, the executive, the judiciary and the legislatureC. All arms of government must overlapD. It ensures that case law is persuasive

Question