Which of the Following Does Not Result in a Permanent

question 29

Multiple Choice

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

• A)Tax-exempt interest on state and local bonds
• B)NOL carryforwards
• C)Domestic production activities deduction
• D)Lobbying expenses

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Definitions:

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.

Variable Costs

Costs that vary directly with the level of output or production, such as materials and labor costs.

Industry Short-run

A period in which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust fully to market changes.

Marginal Cost

The financial addition incurred by manufacturing one more unit of a product or service.