"Temporary differences" are book-tax income differences that eventually appear in both the financial statements and the income tax return,but not in the same reporting period.

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Temporary differences are differences between the carrying amount of an asset or liability in the financial statements and its tax basis. These differences will eventually reverse and result in equal amounts of taxable and deductible amounts in the future; therefore, they will appear in both the financial statements and the income tax return, but not necessarily in the same reporting period.

"Temporary Differences" Are Book-Tax Income Differences That Eventually Appear in Both