Which of the Following Would Not Result in a Permanent

question 43

Multiple Choice

Which of the following would not result in a permanent difference between pretax financial income and taxable income?

• A)product warranty costs
• B)premiums paid for life insurance policies on officers of the company
• C)interest revenue received from investments in municipal bonds
• D)percentage depletion in excess of cost depletion on wasting assets

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Definitions:

Foreign Exchange Rate

The price of one country's currency in terms of another's, determining how much foreign currency can be exchanged for a unit of domestic currency.

German Marks

The official currency of Germany before the adoption of the euro, used from 1873 to 2002.

Dollar Price

This refers to the cost or value of a good, service, or asset expressed in terms of the United States dollar.

English Pound

The currency of the United Kingdom, which is one of the world's major currencies used for trade and investment.