Which of the following temporary differences creates a deferred tax asset in the year in which it originates?

Multiple Choice

Accelerated tax depreciation in excess of straight$-$line book depreciation

Prepayment income reported as income on the tax return prior to being reported as income on the financial income statement

Gain reported on the income statement prior to being reported on the tax return

Prepayment deduction reported on the tax return prior to being reported on the income statement

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's net income from continuing operations.

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's taxable income.

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's book equivalent of taxable income.

The hypothetical tax expense is another name for the company's effective tax rate.

Multiple Choice

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's net income from continuing operations.

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's taxable income.

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's book equivalent of taxable income.

The hypothetical tax expense is another name for the company's effective tax rate.

Which of the following statements is true with respect to a company's effective tax rate reconciliation?

Multiple Choice

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's net income from continuing operations.

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's taxable income.

The hypothetical tax expense is the tax that would be due if the company's statutory tax rate were applied to the company's book equivalent of taxable income.

The hypothetical tax expense is another name for the company's effective tax rate.

Note: Enter all numbers as a positive number and indicate whether a deferred tax expense or a deferred tax benefit.