Which of the Following Does NOT Create a Permanent Book-Tax

question 73

Multiple Choice

Which of the following does NOT create a permanent book-tax difference?

• A)Organizational and start-up expenses.
• B)Key employee death benefit income.
• C)Fines and penalties expenses.
• D)Municipal bond interest income.

---

Definitions:

Annual Interest Rate

The annual interest rate is the percentage charged on a loan or paid on an investment for a one-year period, representing the cost of borrowing or the earnings from an investment.

Net Savings

The amount left after subtracting a person's or organization's total expenses from their total income, often accumulated over time.

Discount Period

The time frame between the beginning of a loan or credit term and the date the full payment is due, during which a discount may be offered for early payment.