Loda Inc. made an $8,300 nondeductible charitable contribution and a $2,000 nondeductible political contribution this year. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Nondeductible charitable contributions are usually considered temporary book/tax differences since they may become deductible in the future if the company's taxable income changes. On the other hand, political contributions are typically permanent book/tax differences that cannot be deducted for tax purposes. Therefore, Choice C is the correct answer.

Loda Inc Made an $8,300 Nondeductible Charitable Contribution and a $2,000