While reviewing a company, an analyst identifies a permanent difference between taxable income and pretax income. Which of the following statements most accurately identifies the appropriate financial statement adjustment?

A.The amount of the tax implications of the difference should be added to the deferred tax liabilities.

B.The present value of the amount of the tax implications of the difference should be added to the deferred tax liabilities.

C.The effective tax rate for calculating tax expense should be adjusted.