Final answer:
Neither option (a) the deduction of the cost of property in the acquisition year nor option (b) the use of different tax vs. financial accounting depreciation schedules, result in permanent differences. These are examples of temporary differences in accounting for income taxes, which will reverse over time.
Step-by-step explanation:
The differences between income tax accounting methods and financial accounting methods often revolve around the timing of income and deductions. For corporate income tax, temporary differences occur when something is recognized in one period for tax purposes and another period for financial accounting purposes. These differences reverse over time and result in deferred tax assets or liabilities.
Looking at the options provided:
- (a) Deducting the cost of certain property in the year of acquisition for tax purposes rather than through regular depreciation methods.
- (b) Tax depreciation computed over a statutory life rather than the asset's useful life.
Option (a) generally leads to a temporary difference because the entire cost is deducted immediately for tax purposes but expensed over time for financial purposes. This means the differences will reverse over the asset's useful life. Similarly, option (b) also leads to a temporary difference because the pace of depreciation for tax purposes is different than the financial accounting pace, but in total, the same amount is depreciated, just over different periods.
Therefore, neither (a) nor (b) are likely to create permanent differences which are differences caused by items that are recorded either only for tax purposes or only for book purposes, but not both. Since the question asks for provisions that do NOT create permanent differences, these temporary differences from accelerated depreciation or immediate expensing would not qualify.