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For each item below, indicate whether it involves: (1) (2) (3) (a) (b) Use the appropriate number to indicate your answer for each. (c) (d)
For each item below, indicate whether it involves: (1) (2) (3) (a) (b) Use the appropriate number to indicate your answer for each. (c) (d) (e) (f) (g) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. A permanent difference. that mmonly accounted for differently for financial reporting purposes than they are for tax purposes. > > For some assets, straight-line depreciation is used for tax purposes while double-declining balance method is used for financial reporting purposes. Warranty expenses are accrued when the sale is made, but cannot be deducted until the work is actually performed. The company uses the percentage of completion method to record revenue on long-term contracts for financial reporting purposes, but the completed contract method is used for tax purposes. Accelerated depreciation is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes, for some equipment. A landlord collects some rents in advance. Rents received are taxable in the period when they are received. Tax-exempt income. An SEC fine related to financial reporting irregularities.
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