Which of the Following Items Does Not Result in a Permanent

question 107

Multiple Choice

Which of the following items does not result in a permanent difference?

• A)Accelerated tax depreciation in excess of straight-line book depreciation.
• B)Interest income from a tax-exempt municipal bond.
• C)Dividends received deduction on the income tax return.
• D)Excess tax benefits from the exercise of an NQO.

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Definitions:

Luxury Goods

High-quality and often expensive products that are not essential but perceived as highly desirable within a specific culture or society.

Termination Statement

An amendment to a financing statement which states that the debtor has no obligation to the secured party.

Financing Statement

A Financing Statement is a document filed to give public notice of a secured party's interest in the personal property of a debtor, used mainly in secured transactions.

Consumer Good

A product or commodity that is produced and purchased to satisfy the personal or family needs of the consumer.