Using straight-line depreciation for financial reporting purposes and MACRS for tax purposes the first year of an asset's life creates a: A. Deferred tax liability. B. Permanent difference not requiring interperiod tax allocation. C. Deferred tax asset. D. Future deductible amount. A deferred tax asset represents a: A Future tax refund. B. Future cash collection. C. Future income tax benefit. D. Future amount of money to be paid out. Which of the following causes a permanent difference between taxable income and pretax accounting income? A interest earned on municipal securities. B MACRS depreciation method used for equipment. C The installment method used for sales of merchandise. D. Advance collections of revenues Which of the following circumstances creates a future deductible amount? A Earning of non-taxable interest on municipal bonds B. Accrued warranty expenses C Prepaid operating expenses. D. Sales of property (installment method for tax purposes) T