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For each of the following book-tax differences, identify first whether it is either temporary or permanent. Then, identify the difference as either favorable or unfavorable.

For each of the following book-tax differences, identify first whether it is either temporary or permanent. Then, identify the difference as either favorable or unfavorable.

Business interest expense limited by Code Sec. 163.

Select one:

A. Permanent, favorable

B. Temporary, unfavorable

C. Temporary, favorable

D. Permanent, unfavorable

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