Stuart Corporation's Taxable Income Differed from Its Accounting Income Computed

question 36

Multiple Choice

Stuart Corporation's taxable income differed from its accounting income computed for this past year. An item that would create a permanent difference in accounting and taxable incomes for Stuart would be

• A) a balance in the Unearned Rent account at year end.
• B) using accelerated depreciation for tax purposes and straight-line depreciation for book purposes.
• C) a fine resulting from violations of OSHA regulations.
• D) making installment sales during the year.

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