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Which of the following statements regarding book-tax differences is true ? Multiple Choice Corporations are not required to report book-tax differences on their income tax

Which of the following statements regarding book-tax differences is true?

Multiple Choice

  • Corporations are not required to report book-tax differences on their income tax returns.
  • Corporations will eventually recognize the same amount of income for book and tax purposes for income-related temporary book-tax differences.
  • Income excludable for tax purposes usually creates a temporary book-tax difference.
  • None of the choices are true.

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