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A Corporation's Taxable Income Almost Never Is the Same as Its

question 143

Essay

A corporation's taxable income almost never is the same as its GAAP financial accounting income. Explain why this occurs. Use the terms permanent and temporary book-tax differences in you answer. Give at least two examples of each type of book-tax difference.


Definitions:

Syndrome

A cluster of symptoms or conditions that occur together, indicating the presence of a particular disease or abnormality.

Symptoms

The physical or mental features that are regarded as indicating a condition or disease, often noticed by the individual affected.

Group

A collection of individuals who come together for a common purpose or share similar interests.

Retrovirus

A virus capable of reversing the normal genetic writing process, causing the host cell to replicate the virus instead of itself.

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