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how do you get this answer? than book income. The difference is temporary. Earl's $899,600 tax deduction is $54,600 more than its book expense, so

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how do you get this answer?

than book income. The difference is temporary. Earl's $899,600 tax deduction is $54,600 more than its book expense, so its taxable income is $54,600 less than book income. The difference is temporary. Question 3 1/1 pts Southlawn Incorporated's taxable income is computed as follows: Book income before tax$2,405,600 Net permanent differences (512,000) Net temporary differences (189,000) Taxable income $1,704,600 Southlawn's tax rate is 21%. Which of the following statements is true? The permanent differences caused a $107,520 net increase in Southlawn's deferred tax liabilities. The permanent differences caused a $107,520 net decrease in Southlawn's deferred tax liabilities. The temporary differences caused a $39,690 net increase in Southlawn's deferred tax liabilities. The temporary differences caused a $39,690 net decrease in Southlawn's deferred tax liabilities

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