All of the following involve a temporary difference for purposes of income tax allocation except

Question

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Temporary differences arise when there's a discrepancy between the timing of income or expense recognition for tax purposes and for financial reporting purposes under generally accepted accounting principles (GAAP). Choices A, B, and C all describe scenarios where the timing of revenue or expense recognition differs between tax reporting and financial reporting, which leads to temporary differences. However, choice D describes a permanent difference, which occurs when an item is deductible for tax purposes but never recognized as an expense in financial reporting, or vice versa, and does not reverse over time.

All of the Following Involve a Temporary Difference for Purposes