Which of the following statements regarding book-tax differences is true?
A)Corporations are not required to report book-tax differences on their income tax returns.
B)Corporations will eventually recognize the same amount of income for book and tax purposes for income-related temporary book-tax differences.
C)Income excludable for tax purposes usually creates a temporary book-tax difference.
D)None of the choices are true.

Question

Quizplus · Accepted Answer

Corporations will eventually recognize the same amount of income for both book and tax purposes for income-related temporary book-tax differences, meaning these differences will reconcile over time as the timing differences resolve.

Which of the Following Statements Regarding Book-Tax Differences Is True