Which of the Following Does NOT Create a Permanent Book-Tax

question 128

Multiple Choice

Which of the following does NOT create a permanent book-tax difference?

• A)Organizational and start-up expenses.
• B)Entertainment expenses.
• C)Fines and penalties expenses.
• D)Municipal bond interest income.

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Definitions:

Discount

The reduction applied to the price of goods, services, or securities, or the amount by which the market value of a bond falls below its par value.

Golf Club Sets

A collection of golf clubs, typically including a variety of woods, irons, and a putter, used to play golf.

Discount Rate

The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Equal Payments

Regular payments that are the same in amount, typically part of a loan or mortgage repayment plan.