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Which of the following statements is true regarding tax regulations and GAAP? Multiple choice question. GAAP depreciation and tax depreciation will almost always be the
Which of the following statements is true regarding tax regulations and GAAP? Multiple choice question. GAAP depreciation and tax depreciation will almost always be the same. When inventory costs are rising, companies prefer FIFO for tax purposes because it lowers taxable income. Tax rules require companies to use Modified Inventory Cost Recovery System (MICRS) to determine cost of goods sold for tax purposes. Companies that use LIFO for tax purposes must also use LIFO in their financial statements.
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
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