Give an example of an item that would cause permanent difference between financial statement net income and taxable income. Choose one item and explain it in the format below.

Describe the item:

Would the item be added or subtracted from pre-tax FS NI to arrive at adjusted pre-tax FS NI?

What is the number of periods affected by the difference?

What is the impact on income tax expense, in other words would income tax expense be higher or lower as a result of the item? Explain.