Dead areas are awkward spaces where normal displays cannot be set up

Caesar Corporation reports municipal interest income on their financial statements. What (if any) book-tax difference will result?

A) Temporary difference - book income greater than taxable income. B) Temporary difference - taxable income greater than book income. C) Permanent difference - book income greater than taxable income. D) No difference - municipal interest is taxable income.

Frank Company has the following income statements available:

2X13 2X12 Sales $900 $800 Less Cost of Goods Sold 470 440 Gross Profit $430 $360 Operating Expenses: Wage Expense $ 95 $ 90 Rent Expense 35 30 Miscellaneous Expense 20 15 Depreciation Expense 25 20 Total Operating Expenses $175 $155 Operating Income $255 $205 Less Other Expenses: Interest Expense 15 10 Income Before Taxes $240 $195 Less Income Tax Expense 110 85 Net Income $130 $110 What is the percentage increase or (decrease) in operating income and income before taxes from 2X12 to 2X13 for Frank Company? Operating Income Income Before Taxes A) 24.4% 23.1% B) 19.4% 24.4% C) 18.8% 19.6% D) 19.6% 18.8% E) 24.4% 18.8%