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Which of the following statements is false concerning per books with income per return? A provision for state income tax is not deductible for
Which of the following statements is false concerning per books with income per return? A provision for state income tax is not deductible for tax purposes creating a permanent difference between book income and taxable income, and therefore would be added back to book income to arrive at taxable income. Prepaid rental income creates a temporary difference between book income and taxable income, and therefore would be added back to or subtracted from book income to arrive at taxable income. Municipal bond interest income creates a permanent difference between book income and taxable income, and therefore would be subtracted from book income to arrive at taxable income. Depreciation deductions can create a temporary difference between book income and taxable income, and therefore would be added back to or subtracted from book income to arrive at taxable income.
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