The tax effects of permanent differences generally are reported in a company's computation of its effective tax rate.

Name: The tax effects of permanent differences generally are reported in a company's computation of its effective tax rate.
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Quizplus · Accepted Answer

Permanent differences affect a company's book income and taxable income differently, and therefore the tax effects of these differences are included in the calculation of the company's effective tax rate.

The Tax Effects of Permanent Differences Generally Are Reported in a Company's