7. Choose the correct statement with regard to temporary differences (P). a. income tax expense reflects the GAAP treatment for T b. income tax expense reflects the income tax code treatment for T c. income tax expense reflects the GAAP treatment for P d. pretax accounting income usually equals taxable income when there are both current year P and T e corect statement with regard to temporary differences () and permanent (nontemporary) 8. The current year is 20x5 and is the first year of operations for a firm. Congress changed the income tax rate for 20x6 and later, in 20x5. There are originating temporary differences in 20x5 expected to reverse in future years. Income tax expense for 20x5 reflects which tax rate(s)? a. average of current year and future rates b. future tax rate only c. current year tax rate ony d. current year and future tax rates