Which of the following does NOT create a permanent book-tax difference?
A) Key employee death benefit income.
B) Fines and penalties expenses.
C) Organizational and start-up expenses.
D) Municipal bond interest income.

Question

Quizplus · Accepted Answer

Organizational and start-up expenses create a temporary book-tax difference as they can be amortized over time for tax purposes, whereas the other options create permanent differences.

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