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How do you know if book-tax differences are favorable/unfavorable and temporary/permanent? Is there some certain situations...

How do you know if book-tax differences are favorable/unfavorable and temporary/permanent? Is there some certain situations that make it always the same or what differentiates them? Can you give examples? does it matter if its negtive or positive ect

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"Favorable" book-tax differences are subtractions from book income when reconciling to taxable income. In contrast, unfavorable book-tax differences are additions to hook income when reconciling to taxable income. That is, relative to book income, favorable book-tax differences decrease taxable Income (.e., they reduce taxable income and taxes payable so they are favorable) andunfavorable book-tax differences Increase taxable income (I.e., they Increase taxable income and taxes payable so they are unfavorable).

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