5. Identify the following items as creating a temporary difference, permanent difference, or no difference. No Temporary Difference Permanent Item Difference Difference a. Reserve for bad debts b. Accrued other post- employment benefits c. Dividends received deduction d. Nondeductible fines and penalties e. Interest from municipal bonds f. Net operating loss carryover g. Stock option expense h. Deferred compensation

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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5. Identify the following items as creating a temporary difference, permanent difference, or
no difference.
No
Temporary
Difference
Permanent
Item
Difference
Difference
a. Reserve for bad debts
b. Accrued other post-
employment benefits
c. Dividends received
deduction
d. Nondeductible fines and
penalties
e. Interest from municipal
bonds
f. Net operating loss
carryover
g. Stock option expense
h. Deferred compensation
Transcribed Image Text:5. Identify the following items as creating a temporary difference, permanent difference, or no difference. No Temporary Difference Permanent Item Difference Difference a. Reserve for bad debts b. Accrued other post- employment benefits c. Dividends received deduction d. Nondeductible fines and penalties e. Interest from municipal bonds f. Net operating loss carryover g. Stock option expense h. Deferred compensation
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