Which of the following does NOT create a temporary book-tax difference?
A)Deferred compensation.
B)Bad-debt expense.
C)Depreciation expense.
D)Dividends received deduction.

Question

Quizplus · Accepted Answer

Dividends received deduction is a permanent book-tax difference because it is a deduction allowed for tax purposes but is not reflected in the financial statements. Deferred compensation, bad debt expense, and depreciation expense are examples of temporary book-tax differences because they are deductible for tax purposes before they are recognized on the financial statements.

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