Your company receives interest on a tax-free bond. This creates a permanent difference between the Pretax Profit (which includes the Interest Income) and the Taxable Income (which does not include the Interest Income from the tax-free bond). How would you account for this difference in the year that the interest is received?

Answer rating: 100% (QA)

When your company receives interest income from a taxfree bond it creates a permanent difference bet... View the full answer