When do permanent differences arise? O A. Permanent differences arise for two reasons: 1) an tem is included in the computation of taxable income but never in book in O B. Permanent differences anise when an item is included in the computation of taxable income and book income. O C. Permanent differences arise when nontaxable income is included in the computation of taxable income. ent differences arise when an item is excluded from the computation of book income and taxable income