True/False __________ 1. An expense amount that is used in determining net income per books, but is not deductible in computing taxable income, is an addition item on Schedule M-1 (Form 1120). __________ 2. The uniform capitalization rules require a firm to capitalize some financial statement expenses related to inventory (some indirect costs). This creates a permanent difference between book income and taxable income. __________ 3. The tax accounting accrual method (claim of right doctrine) requires that taxpayers recognize income when they receive the cash related to the income, even if the income is not yet recognized for book purposes. __________ 4. Under the tax accounting accrual method, an expense is deductible when all events have occurred that fix the taxpayer's obligation and the amount of the liability can be estimated with reasonable certainty.