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Skyler is the CFO of A 1 A Carwash Inc. A 1 A Carwash s tax advisers have recommended two tax planning ideas, each providing

Skyler is the CFO of A1A Carwash Inc. A1A Carwashs tax advisers have recommended two tax planning ideas, each providing $5,000,000 of current-year cash tax savings. One idea is based on a timing difference and is expected to reverse in full 10 years in the future. The other idea creates a permanent difference that never will reverse. Determine whether these ideas will allow A1A Carwash to reduce its reported book income tax expense for the current year. Which idea will you recommend to Skyler?

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