A company has unearned income of $75, 000. For tax purposes, the revenue is taxable on receipt of the cash. What is the tax basis for the unearned revenue? The company's tax rate is 30%.

Multiple Choice

• Tax basis is a liability of $75, 000
• Tax basis is zero.
• Tax basis is an asset of $22, 500
• Tax basis is a liability of 22, 500.

The company has a warranty liability with a balance of $39, 000, which will be paid in the future. For tax purposes, warranties are expensed when paid. The company pays taxes at a rate of 35%. The tax basis for the warranty liability is:

Multiple Choice

• Tax basis is an asset of $39, 000
• Tax basis is a liability of $39, 000
• Tax basis is zero.
• Tax basis a liability of $13, 650.

Which of the following would result in a deferred tax asset?

Multiple Choice

• Rent received in advance.
• Point of sale revenue recognition for the books, and cost recovery method of revenue recognition for tax.
• Warranty provision.
• Using straight-line depreciation for the books and accelerated depreciation for tax.

Golf dues paid for by a company are:

Multiple Choice

• a permanent difference
• a timing difference
• a temporary difference
• a reversing difference