Which of the following creates a permanent difference between income for financial reporting purposes and income for tax purposes?

Question

Quizplus · Accepted Answer

Permanent differences are items that are included in the calculation of taxable income or financial income but never both. Penalties on late payment of sales taxes are an example of a permanent difference because they are deductible for financial reporting purposes but not deductible for tax purposes.

Which of the Following Creates a Permanent Difference Between Income