Which of the following would not result in a permanent difference between pretax financial income and taxable income?

Question

Quizplus · Accepted Answer

Product warranty costs typically result in a temporary difference between pretax financial income and taxable income because they are recognized in different periods for financial reporting and tax purposes, but eventually, the amounts recognized will equalize over time. The other options (B, C, D) are examples of items that would result in permanent differences because they either are never taxable or deductible, or they involve deductions that will never be recognized for tax purposes.

Which of the Following Would Not Result in a Permanent