Identify whether the following items relate to a deductible temporary difference, a taxable temporary difference, or neither.
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Identify whether the following items relate to a deductible temporary difference, a taxable temporary difference, or neither.
CCA = capital cost allowance
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a. b. Item Warranty expense accrued but not deductible until actual costs are incurred CCA* that exceeds depreciation expense for property, plant, and equipment Dividends received that are not taxable Deductible Taxable temporary difference temporary difference Neither
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a Deductible temporary difference This is because the expense is recorded in the financial statement...View the full answer
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