TrendSetter Inc.paid $50,000 in premiums for life insurance coverage for its key employees.What is the nature of the book-tax difference created by this expense?

Name: TrendSetter Inc.paid $50,000 in premiums for life insurance coverage for its key employees.What is the nature of the book-tax difference created by this expense?
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Quizplus · Accepted Answer

The premiums paid for life insurance on key employees are not deductible for tax purposes, creating a permanent unfavorable book-tax difference.