True or False

1. Using different methods for calculating depreciation for tax reporting and financial statement reporting, causes a temporary difference between taxable income and pretax accounting income.

2. Taxable revenue collected in advance of being earned results in a deferred tax liability.

3. A Corporations shares that are traded on an exchange raise capital for the corporation when bought and sold between investors.

4. S-Corporations avoid double taxation because taxable income is passed-through to its shareholders and reported on the shareholders income tax returns.

5. The projected benefit obligation is decreased by an increase in the actuarys assumed discount rate.