It Is Important to Distinguish Between Temporary and Permanent Book-Tax

question 14

Multiple Choice

It is important to distinguish between temporary and permanent book-tax differences for which of the following reasons?

• A) Temporary book-tax differences will reverse in future years whereas permanent differences will not.
• B) Certain corporations are required to disclose book-tax differences as permanent or temporary on their tax returns.
• C) Both A and B
• D) Neither A nor B

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