Earl Company Uses the Accrual Method of Accounting

Earl Company uses the accrual method of accounting. Here is a reconciliation of Earl's allowance for bad debts for the current year. Because of the difference between the GAAP rules and the tax rules for accounting for bad debts, Earl Company has a:

A) $54,600 permanent excess of book income over taxable income.
B) $54,600 permanent excess of taxable income over book income.
C) $54,600 temporary excess of taxable income over book income.
D) $54,600 temporary excess of book income over taxable income.