It is important to distinguish between temporary and permanent book-tax differences for which of the following reasons?
A) Temporary book-tax differences will reverse in future years whereas permanent differences will not.
B) Certain corporations are required to disclose book-tax differences as permanent or temporary on their tax returns.
C) Both A and B
D) Neither A nor B

Question

Quizplus · Accepted Answer

Both temporary book-tax differences and disclosing book-tax differences are valid reasons why a corporation should distinguish between temporary and permanent book-tax differences.

It Is Important to Distinguish Between Temporary and Permanent Book-Tax