Which of the following is not considered a permanent difference?

Question

Quizplus · Accepted Answer

Permanent differences are items that are either included in taxable income but not in accounting income, or vice versa, and they do not reverse over time. Interest received on municipal bonds, fines resulting from violating the law, and premiums paid for life insurance on a company's CEO when the company is the beneficiary are all examples of permanent differences. Stock-based compensation expense, however, can create temporary differences due to the timing of recognition for tax and financial reporting purposes, making it not a permanent difference.

Which of the Following Is Not Considered a Permanent Difference