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Which of the following book-tax basis differences results in a taxable temporary difference? Book basis of a fixed asset exceeds its tax basis. Reserve for

  1. Which of the following book-tax basis differences results in a taxable temporary difference?
    1. Book basis of a fixed asset exceeds its tax basis.
    2. Reserve for bad debt expense for book in the current year that did not provide a bad debt tax deduction in the tax return this year.
    3. Both (a) and (b) result in a taxable temporary difference.

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