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In the current year, Kaspbrak Corp. accrues a $3 million pension liability in its annual financial statements. On June 30th of the following year, Kaspbrak
In the current year, Kaspbrak Corp. accrues a $3 million pension liability in its annual financial statements. On June 30th of the following year, Kaspbrak Corp. deposits $1 million dollars into its pension plan. The remaining $2 million dollar pension liability is satisfied when it deposits an additional $2 million dollars into the pension plan on October 31st. For book purposes, an expense for the full $3 million is recognized under ASC 715-30 in the year the liability is accrued. Kaspbrak Corp files its tax return on October 10th. 1c: If there is a book-tax basis difference, will it be temporary or permanent
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