What Events Create Permanent Differences Between Accounting Income and Taxable

question 66

Essay

What events create permanent differences between accounting income and taxable income? What effect do these events have on the determination of income taxes payable and deferred income taxes?

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Definitions:

ATP

Adenosine triphosphate is a molecular entity responsible for storing and transmitting energy inside cellular structures.

Calvin Cycle

A series of biochemical reactions taking place in the chloroplasts of photosynthetic organisms, part of the process of carbon fixation in photosynthesis.

Rubisco

The common name of ribulose bisphosphate carboxylase/oxygenase, the enzyme that catalyzes the fixation of carbon dioxide in the Calvin cycle.

PGA

The term PGA could refer to multiple concepts depending on context; if related to biology, it often stands for Phosphoglyceric acid, a 3-carbon molecule formed in the Calvin cycle of photosynthesis.