Which of the following items is a temporary difference between tax income and financial accounting income?

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Depreciation is a temporary difference between tax income and financial accounting income because it is deducted from the taxable income over several years but is deducted immediately from the financial accounting income. The other choices (production activities deduction, dividends-received deduction, proceeds on life insurance on a key executive) are permanent differences because they are either not deductible or not taxable for either tax or financial accounting purposes.

Which of the Following Items Is a Temporary Difference Between