Eddy Corporation Engaged in a Transaction That Generated $100,000 Book

Eddy Corporation engaged in a transaction that generated $100,000 book income but only $81,000 taxable income. Which of the following is true?

A) If the $19,000 excess of book income over taxable income is temporary, the transaction has no effect on Eddy's deferred tax accounts.
B) The $19,000 excess of book income over taxable income is an unfavorable difference.
C) If the $19,000 excess of book income over taxable income is permanent, the transaction has no effect on Eddy's deferred tax accounts.
D) None of these choices are true.