What is the difference between permanent and temporary book-tax differences?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 83% (12 reviews)

Permanent booktax differences arise from items that are income or deductions during the year for either book purposes or for tax purposes but not both Permanent differences do not reverse over time so over the long run the total amount of income or deductions for the items is different for book and tax purposes In contrast temporary booktax differences are those booktax differences that reverse over time such that over the longterm corporations recognize the same amount of income or deductions for the items on their financial statements as they recognize on their tax returns Temporary booktax differences arise because the income or deduction ...View the full answer

Answered By

JAPHETH KOGEI

Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are: Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking, So, I look forward to helping you solve your academic problem. I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs. I travel three times a year either to the USA, Europe and around Africa. As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc). So, I look forward to tutoring you. I believe that it will be exciting to meet them.

3.00+ 2+ Reviews 10+ Question Solved

Related Book For book-img-for-question