Which of the Following Represents a Permanent Difference

question 67

Multiple Choice

Which of the following represents a permanent difference?

• A) Point-of-sale revenue recognition for financial reporting purposes, installment method for tax purposes
• B) Carryback, carryforward option for taxes, no such option for financial reporting purposes
• C) Straight-line depreciation for financial reporting purposes, accelerated depreciation for tax purposes
• D) Goodwill amortization deducted on the tax return but not amortized for financial reporting purposes

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Definitions:

Zinc

A metallic element used extensively in metal alloys and as protective coatings for iron and steel to prevent corrosion.

Copper Mining

The process of extracting copper from the earth, involving digging, blasting, and processing the ore.

Low-Grade Ores

Minerals containing a smaller percentage of valuable metals or minerals, thus requiring more resources to extract them profitably.

Depletion Time

The estimated time it will take to use up a resource at its current rate of consumption.