An example of an excluded taxable temporary difference is:

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Goodwill is an example of an excluded taxable temporary difference because it arises from differences in accounting practices between entities rather than from a difference between the tax base and the carrying amount of an asset or liability. U.S. tax laws do not allow the deduction of goodwill for tax purposes, so any future reversal of the temporary difference will not result in a taxable event. Accrued interest, provision for warranties, and prepaid insurance are all examples of taxable temporary differences because they result from differences between the tax base and the carrying amount of an asset or liability, and will therefore affect taxable income in the future when the temporary difference is reversed.

An Example of an Excluded Taxable Temporary Difference Is