Question

An example of a permanent difference is

a. proceeds from life insurance on officers.
b. interest expense on money borrowed to invest in municipal bonds.
c. insurance expense for a life insurance policy on officers.
d. All of these answers are correct."

Answer 1

Answer:

Option D is correct one.

All of these answers are correct.

Explanation:

A permanent difference is a business transaction that is reported differently for financial and tax reporting purposes, and for which the difference will never be eliminated.This is income for financial reporting purposes, but is not recognised as taxable income. eg: Penalties and fines.