medium · Financial Accounting assets

Which of the following is considered a permanent difference that affects the effective tax rate but does not result in a deferred tax asset or liability?

  1. Installment sale revenue recognized for book but deferred for tax
  2. Excess of MACRS depreciation over straight-line depreciation
  3. Prepaid rent recognized as an asset on the balance sheet
  4. Life insurance premiums paid on a policy where the corporation is the beneficiary

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