An expense included in the determination of taxable income this year but not included in book income until next year is an example of a temporary difference.

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This is because a temporary difference refers to a difference between the tax basis and the book basis of an asset or liability. If an expense is deductible for tax purposes in the current year but is not recognized in the company's financial statements until the following year, this creates a temporary difference that will eventually reverse in the future.

An Expense Included in the Determination of Taxable Income This