D) Dividends received deduction 13) iScope Incorporated paid $3,000 in interest on a loan it used to purchase municipal bonds. What is the nature of the book-tax difference relating to this expense? 13) A) Permanent; favorable. B) Permanent; unfavorable. C) Temporary: favorable. D) Temporary: unfavorable. 14) Which of the following taxes would not be accounted for under ASC 740? 14) A) Income taxes paid to the German government. B) Income taxes paid to the U.S. government. C) Value-added taxes paid to the Swiss government. D) Income taxes paid to New York City