Which of the following is a permanent difference for tax purposes

Which of the following is a permanent difference for tax purposes

Which of the following is a permanent difference for tax purposes?

A. Depreciation (book vs. tax)

B. Estimated warranty costs

C. Interest income on municipal bonds

D. Deferred revenue

Answer: C

Explanation: Municipal bond interest is tax-exempt (permanent difference). Depreciation and warranty costs are temporary differences.