Which of the Following Causes a Permanent Difference Between Taxable

question 6

Multiple Choice

Which of the following causes a permanent difference between taxable income and financial accounting income?

• A) The useful life of an asset is 10 years. The asset is depreciated over 7 years for tax purposes.
• B) Rent received in advance is taxable upon receipt.
• C) A life insurance premium paid by the corporation on a policy that names the corporation as the beneficiary.
• D) A penalty paid to a bank when a CD is cashed before its maturity date.

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Definitions:

Cultural Norms

Common norms and guidelines that direct the actions of individuals in societal groups.

Dorothea Dix

A 19th-century American advocate for the mentally ill who significantly improved the way mental health patients were treated and was instrumental in creating the first generation of American mental asylums.

State Hospitals

Public hospitals typically funded and operated by the government, offering healthcare primarily to people with psychiatric disorders.

Clinical Practitioner

A healthcare professional who diagnoses, treats, and manages patients, often in a specific area of medicine or psychology.