Which of the Following Temporary Differences Creates a Deferred Tax

question 12

Multiple Choice

Which of the following temporary differences creates a deferred tax liability?

• A) Accumulated tax amortization in excess of book amortization on a customer list.
• B) Compensation expensed for book purposes but deferred for tax purposes.
• C) Accumulated tax depreciation in excess of book depreciation on a building.
• D) Both "Accumulated tax depreciation in excess of book depreciation on a building" and "Accumulated tax amortization in excess of book amortization on a customer list" create a deferred tax liability."

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Definitions:

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Occipital

Pertaining to the occipital lobe of the brain, which is primarily responsible for visual processing.

Agnosia

A disorder characterized by the inability to recognize and identify objects or persons, due to damage in specific brain areas.

Common Objects

Everyday items or entities that are familiar to most people within a particular culture or society.