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Ouyang Inc. acquires a piece of equipment and uses straight-line depreciation for the first year of use while it uses the accelerated depreciation method for

Ouyang Inc. acquires a piece of equipment and uses straight-line depreciation for the first year of use while it uses the accelerated depreciation method for tax purpose. Ouyang Inc. is very likely to report in the first year of usage:

a) deferred tax liability;
b) deferred tax asset;
c) deferred tax patent;
d) deferred tax receivable;
e) Nothing special.

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