TrendSetter Inc. paid $50,000 in premiums for life insurance coverage for its key employees for which TrendSetter Inc. is the beneficiary. What is the nature of the book-tax difference created by this expense?
A. Temporary; favorable.
B. Permanent; favorable.
C. Permanent; unfavorable.
D. Temporary; unfavorable.
Answer: C
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Cash interest payment is computed annually when a bond is issued for other than its face value. For a bond issued at a discount, how will this component change as the bond approaches maturity?
a. decrease b. increase c. remain constant d. not enough information given to decide
An understatement of year 1's beginning inventory will
A) cause year 2's gross margin to be overstated. B) cause year 1's cost of goods sold to be understated. C) cause year 2's gross margin to be understated. D) have no effect on year 1's gross margin.
Discuss the different types of business letter formats
What will be an ideal response?
The ________ financing strategy requires a firm to pay interest on excess funds borrowed but not needed throughout the entire year
A) aggressive B) conservative C) permanent D) seasonal