Earl Company Uses the Accrual Method of Accounting

Earl Company uses the accrual method of accounting.Here is a reconciliation of Earl's allowance for bad debts for the current year. Because of the difference between the GAAP rules and the tax rules for accounting for bad debts,Earl Company has a:

A) $54,600 permanent excess of book income over taxable income.
B) $54,600 permanent excess of taxable income over book income.
C) $54,600 temporary excess of taxable income over book income.
D) $54,600 temporary excess of book income over taxable income.