Huml Inc. could not deduct an accrued expense because of the all-events test. As a result, Huml has a permanent unfavorable book/tax difference.

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The inability to deduct an accrued expense due to the all-events test would result in a temporary difference, not a permanent one, because the deduction may be allowed in a future tax year when the all-events test is met.

Huml Inc Could Not Deduct an Accrued Expense Because of the the All-Events