With Respect to the Difference Between Taxable Income and Pretax

With respect to the difference between taxable income and pretax accounting income, the tax effect of the undistributed earnings of a subsidiary included in consolidated income should normally be

A) Accounted for as a timing difference
B) Accounted for as a permanent difference
C) Ignored because it must be based on estimates and assumptions
D) Ignored because it cannot be presumed that all undistributed earnings of a subsidiary will be transferred to the parent company