Question $10$

Which of the following would result in a permanent tax difference for a firm?

The inclusion of income from municipal bonds for financing reporting purposes and

excluding that income for tax reporting purposes

Use of straight$-$line depreciation for financial reporting purposes and an accelerated

depreciation method for tax reporting purposes

None of these answers would result in a permanent tax difference

The use of an allowance for warranty liabilities for financial reporting purposes and actual

warranty costs for tax reporting purposes

Use of the allowance method for bad debts for financial reporting purposes and actual bad

debt write$-$offs for tax reporting purposes