[Captain Awesome]

Okay, I have studied so much I’m starting to get confused and everything’s blurring together. I did REG sim #24 for retained earnings (M2), but when I deducted expenses from revenue to get NI, I only deducted 50% of meals. This turned out to be incorrect and made half my answers wrong.

So please straighten me out. For NI don’t worry about the 50% non-deductible portion of meals because that only applies to tax, not NI?

[vbmer]

Yes, that is right. The 50% meal deduction only applies to tax.

Net income is a very specific financial accounting term that only ever means one thing. It is reconcilable to taxable income, but they are usually not the same.

[Author]

Replies