A $50,000 cash tax savings that is temporary has the same effect on a corporation's current year effective tax rate as a $50,000 cash tax savings that is a permanent book-tax difference.

Question

Quizplus · Accepted Answer

A temporary cash tax savings will only affect the current year's effective tax rate, while a permanent book-tax difference will have an ongoing impact on the effective tax rate for multiple years. Therefore, the statement is false.

A $50,000 Cash Tax Savings That Is Temporary Has the Same