Listed below are a number of items that are required to adjust net income before income tax to taxable income.

Required:

1. For each item, indicate if it will be added or subtracted from net income before income taxes.

2. For each item, indicate if it is a permanent difference or a temporary difference.

Transcribed Image Text:

Item a. Golf club dues, $20,000 b. Depreciation expense, $60,000 c. Development costs incurred during year; capitalized for accounting purposes, $100,000 Add or Subtract