Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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provide correct and short answer. General Account
Transcribed Image Text:Using straight-line depreciation for financial reporting
purposes and MACRS for tax purposes in the first year
of an asset's life creates a:
a. Future deductible amount
b. Permanent difference not requiring inter-period tax
allocation
c. Deferred tax asset
d. Deferred tax liability
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