Question: Indicate and explain whether the following situation should be treated as a temporary difference or a permanent difference and support your answer pretax accounting income

Indicate and explain whether the following situation should be treated as a temporary difference or a permanent difference and support your answer

pretax accounting income and taxable income differ because 80% of dividends received from US corporations was deducted from taxable income, while 100% of dividends received was reported for financial statement purposes.

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