Royalties are recognized when received in year 3 for income tax purposes and recognized when earned in year 4 for financial statement purposes. This an example of a O Permanent difference that does not give rise to deferred taxes. Permanent difference that gives rise to deferred taxes. Temporary difference that does not give rise to deferred taxes. Temporary difference that gives rise to deferred taxes.

Royaitiesare recognized when ceceived in year 3 for income tax purposes and recognized when earned in year 4 for financial statement purposes. This an example of a Permanent difference that does not giverife to deferred taxes Permanent difference that gives rise to deferred taxes. Temporacy dilference that does not give rise to deferred taxos Temporary difference that zives rise to deferred taxes