Which of the Following Book-Tax Basis Differences Results in a Deductible

question 116

Multiple Choice

Which of the following book-tax basis differences results in a deductible temporary difference?

• A)Book basis of an employee's postretirement benefits liability exceeds its tax basis.
• B)Book basis of a building exceeds the tax basis of the building.
• C)Book basis of an acquired intangible exceeds the tax basis of the intangible.
• D)Tax basis of a prepaid liability exceeds the book basis of the liability.

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Definitions:

Continence

The ability to control the bodily functions of urination and defecation, being a sign of health in various systems.

Alzheimer's Disease

A progressive neurological disorder that causes brain cells to waste away and die, leading to a continuous decline in thinking, behavioral, and social skills.

Amnesia

This condition involves the loss of memories, such as facts, information, and experiences, potentially caused by disease, injury, or psychological trauma.

Aphasia

A condition characterized by the loss of the ability to understand or express speech, caused by brain damage.