Loda Inc Made an $8,300 Nondeductible Charitable Contribution and a $2,000

question 55

Multiple Choice

Loda Inc. made an $8,300 nondeductible charitable contribution and a $2,000 nondeductible political contribution this year. Which of the following statements is true?

• A) Both nondeductible contributions are permanent book/tax differences.
• B) Both nondeductible contributions are temporary book/tax differences.
• C) The nondeductible charitable contribution is a temporary book/tax difference. The nondeductible political contribution is a permanent book/tax difference.
• D) The nondeductible charitable contribution is a permanent book/tax difference. The nondeductible political contribution is a temporary book/tax difference.

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Definitions:

Price of Food

The cost at which food items are sold to consumers, which can vary based on factors like availability, demand, and production costs.

Price of Coffee

The amount of money required to purchase a specific quantity of coffee.

Budget Line

Represents the combination of goods a consumer can purchase with a specific budget at given prices.

Slope

The rate at which a line inclines or declines, showing the relationship between the change in the vertical axis to the horizontal axis.