Temporary differences between pretax book income and taxable income arises from

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Temporary differences between pretax book income and taxable income can arise from many factors, but depreciation on long-lived assets and bad debt expense are two common ones. For example, book depreciation may be different from tax depreciation due to differences in useful lives or methods. Similarly, bad debt expense may be recognized for book purposes before it is allowed for tax purposes. Other examples of temporary differences include tax-exempt interest revenue, certain fines, and net operating loss carryforwards.

Temporary Differences Between Pretax Book Income and Taxable Income Arises