Kedzie Company determined that the book basis of its liability for "other postretirement benefits" (OPEB)exceeded the tax basis of this account by $10,000,000. This basis difference is characterized as:

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This is a deductible temporary difference because the book basis of the liability is higher than the tax basis, indicating that the company will be able to deduct this difference in future tax periods when the benefits are actually paid or become due.

Kedzie Company Determined That the Book Basis of Its Liability