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The differences between book and tax income can be temporary or permanent differences. Which of the of the following statements is correct? A) An example

The differences between book and tax income can be temporary or permanent differences. Which of the of the following statements is correct?

A) An example of a temporary difference is non-taxable municipal bond interest.

B) Permanent differences do not result in deferred tax assets or deferred tax liabilities.

C) A company can decide which differences are permanent and which are temporary.

D) If a temporary tax difference is initially recorded as a deferred tax asset, it will be recorded as a deferred liability when it is reversed.

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