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Which of the following best describes how to account for the difference between a company's financial income and taxable income, under generally accepted accounting principles?

Which of the following best describes how to account for the difference between a company's financial income and taxable income, under generally accepted accounting principles?

Computation of deferred income tax based on temporary and permanent differences.

Computation of deferred income tax based on permanent differences.

Computation of income tax expense based on taxable income.

Computation of deferred tax assets and liabilities based on temporary differences.

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