When calculating income tax expense, the taxable income of a corporation differs from pre-tax accounting income because of

a.

Permanent Differences

b.

Temporary Differences

c.

Both Permanent & Temporary Differences

d.

Neither

The difference between the tax base of an asset or liability and its reported amount on the SFP is called a

a.

permanent difference.

b.

temporary difference.

c.

current difference.

d.

future income tax expense.