Amanda Company sold an asset and as a result had a capital gain of $15,000.Fifty percent of this amount represents a permanent difference.

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Permanent differences are items that are either included in financial income but never in taxable income, or vice versa. Capital gains, however, typically affect both financial and taxable income, although they may be taxed at different rates. The concept of a "permanent difference" does not apply to the portion of a capital gain.

Amanda Company Sold an Asset and as a Result Had