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 difference.

Question

Quizplus · Accepted Answer

A temporary tax savings affects deferred tax liabilities or assets, impacting future tax rates, while a permanent difference directly affects the current year's effective tax rate.

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