Register now or log in to join your professional community.
in its income statement for the current fiscal year. According to applicable tax legislation such contributions are not tax-deductible.
Which of the following statements is most likely correct?
A. A temporary difference of $250,000 gives rise to a deferred tax liability.
B. A deferred tax asset arises, as taxable income is greater than accounting profit.
C. The treatment of $250,000 for accounting and tax purposes represents a permanent difference.
Yes, Option C is the right answer.
C. The treatment of $250,000 for accounting and tax purposes represents a permanent difference.
C-----------------------------------------------
