Which of the Following Does Not Result in a Permanent

question 45

Multiple Choice

Which of the following does not result in a permanent book/tax difference?

• A)Business meal and entertainment expense
• B)Domestic production activities deduction
• C)Premiums paid on key-person life insurance policies
• D)All of the above result in a permanent book/tax difference.

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Definitions:

Percentage Change

A mathematical calculation that shows how much a number has increased or decreased compared to its previous value, expressed as a percentage.

Complementary Goods

Goods and services that are used together; when the price of one falls, the demand for the other rises (and conversely).

Inelastic

A term describing demand when it changes by a smaller percentage than changes in price.

Elasticity of Demand

An index indicating the degree to which demand for a product changes in response to a price change, where an elasticity greater than one signifies a high level of responsiveness.