1. Which of the following causes a permanent difference between pretax accounting income and taxable income?

a. Prepaid expenses

b. Advanced collections of revenues

c. Estimated expenses and losses.

d. Expenses due to violations of the law.

e. None

2. For a leased asset under a lease that qualifies as a finance lease because of the ownership of the asset transfers to the lessee, the amortization period used by the lessee must be,

a. The same period that was used by the lessor

b. The remaining life of the asset at the time the lease agreement took effect.

c. The useful life to the lessee.

d. The term of the lease regardless of the lease provisions.

e. None of these answer choices is correct.