Question
Which of the following items would not result in a deferred tax liability for financial reporting purposes? Select one: a. Installment sales, accrued for GAAP
Which of the following items would not result in a deferred tax liability for financial reporting purposes?
Select one: a. Installment sales, accrued for GAAP purposes, but taxable when payments are collected. b. Rental receipts received in advance of services provided are deferred for GAAP purposes, but are taxable as collected for tax purposes. c. Six-month prepaid insurance amount, recognized as prepaid expense for GAAP purposes, but deductible when paid for tax purposes. d. Depreciation of equipment in its first year of purchase, calculated under the straight-line method for GAAP purposes, but under MACRS for tax purposes.
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