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ILLINOIS CENTRAL CORP. ADOPTS NEW INCOME TAX STANDARD

 ILLINOIS CENTRAL CORP. ADOPTS NEW INCOME TAX STANDARD
 CHICAGO, March 31 /PRNewswire/ -- Illinois Central Corp. (NYSE: IC)


announced today that it had adopted, effective Jan. 1, 1992, the recently issued Statement of Financial Accounting Standards No. 109- "Accounting for Income Taxes."
 As a result of adopting this standard, the company will record a one time tax benefit in excess of $20 million in the first quarter of 1992. Such amount will be reflected in income as a separate line item as the "cumulative effect of a change in accounting principle." The company believes early adoption is appropriate since it had adopted the previous Standard, No. 96, in 1988 when it was issued and because this new standard better reflects the current and future tax consequences of events that have been recognized in the company's financial statements and tax returns. The major differences between the two standards are the criteria for recognizing deferred tax assets or liabilities. In accordance with Standard No. 96, the company did not anticipate any differences between book and tax recognition in future years. Therefore, the company previously was unable to benefit from amounts in excess of $20 million at Dec. 31, 1991, which were available to reduce future financial statement income tax expense.
 Illinois Central Corp.'s principal subsidiary, Illinois Central Railroad Company, operates a 2,700 mile freight railroad between Chicago and the Gulf of Mexico.
 -0- 3/31/92
 /CONTACT: Dale W. Phillips, vice president and chief financial officer of Illinois Central Corp., 312-819-7930/
 (IC) CO: Illinois Central Corp. ST: Illinois IN: TRN SU:


SH -- NY073 -- 3480 03/31/92 14:14 EST
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Publication:PR Newswire
Date:Mar 31, 1992
Words:269
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