Which of the following statements is not considered a timing difference due to separate accounting methods for taxable income and E&P?
A)Dividends received deduction
B)Installment gain recognized in current year related to a sale in a prior year
C)Gain on sale of depreciable assets with higher E&P basis
D)Section 179 expense

Question

Quizplus · Accepted Answer

The dividends received deduction is not a timing difference due to separate accounting methods for taxable income and E&P. It is a permanent difference, meaning that the deduction is allowed in the current year for tax purposes but does not affect E&P. The other choices are all timing differences because they affect both taxable income and E&P, but in different periods.

Which of the Following Statements Is Not Considered a Timing