The payment of life insurance premiums on company executives is an example of a permanent difference.

Name: The payment of life insurance premiums on company executives is an example of a permanent difference.
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Premiums on life insurance policies for company executives are not tax-deductible expenses for the company. Therefore, they create a permanent difference between book and tax income, which is reflected in the financial statements and tax returns.

The Payment of Life Insurance Premiums on Company Executives Is