On December 31st, Marsh Associates, Inc. records a $10 million liability for executive bonuses in its financial statements. None of the executives are "covered employees" [for purposes of IRC Section 162(m)], none of them are shareholders of Marsh, and they do not need to be employed by Marsh on the date the bonus is actually paid in order to be entitled to it. Of the $10 million liability, $4 million will be paid to executives on January 31st of the following year with the remainder to be paid on June 30th of the following year. For book purposes, an expense for executive compensation is recognized in full under ASC 710 when accrued. 4c: If there is a book-tax basis difference, will it be temporary or permanent