MULTIPLE CHOICE-Conceptual 1. Taxable income of a corporation a. differs from accounting income due to differences in intraperiod allocation between the two methods of income determination. b. differs from accounting income because companies use the full accrual method for financial reporting but use the modified cash basis for tax reporting. c. is based on generally accepted accounting principles. d. is reported on the corporation's income statement. Taxable income of a corporation differs from pretax financial income because of Permanent Temporary No No Yes Yes No Yes Yes No d. The deferred tax expense is the a. increase in balance of deferred tax asset minus the increase in balance of deferred 3. tax liability. b. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. c. increase in balance of deferred tax liability from the beginning to the end of the accounting period. d. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. Machinery was acquired at the beginning of the year. Depreciation recorded during the life of the machinery could result in 4. Future Future Taxable Amounts Yes Yes No No Deductible Amounts Yes No Yes No b