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Dante Inc Reported Fines and Penalties on Their Income Statement This

Question 13

Multiple Choice

Dante Inc. reported fines and penalties on their income statement this year. What (if any) book-tax difference will result?


A) Temporary difference; book income less than taxable income.
B) Permanent difference; book income greater than taxable income.
C) Permanent difference; book income less than taxable income.
D) No difference; fines and penalties are tax deductible.

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