Which of the following is not considered a timing difference due to separate accounting methods for taxable income and E&P?

A) Dividends received deduction

B) Installment gain recognized in current year related to a sale in prior year

C) Gain on $500,000 taxable income sale of depreciable assets with higher E&P basis

D) Section 179 expense

Solutions

Expert Solution

Answer is: A) Dividend received deduction

All of the deductions mentioned above may follow separate accounting methods foe taxable income and E $ P which causes timing difference except - Dividend received deduction , as this is a deduction allowed for taxable income only and not for E P and hence, did not causes occurrence of timing difference.

ekkarill92 answered 1 year ago

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