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Problem 1: Caesar Corporation reports interest income from investments in municipal bonds, which is not taxable, on their financial statements. Identify if any accounting-tax difference will result?
Select one:a. Temporary difference; acounting income is greater than taxable income.b. Temporary difference; taxable; income is greater than acounting income.c. Permanent difference; accounting income greater than taxable income.d. Permanent differences may be added back to or deducted from accounting income.e. No difference since municipal interest is a non taxable income and not included in the accounting income
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