AmStore Incorporated Sold Some of Its Heavy Machinery at a Gain

question 105

Multiple Choice

AmStore Incorporated sold some of its heavy machinery at a gain. AmStore used the straight-line method for financial accounting depreciation andimmediate expensing for tax cost recovery. If accumulated depreciation for financial accounting purposes is less than accumulated depreciation for tax reporting purposes, what is the nature of the book-tax difference associated with the gain on the sale?

• A)Permanent; favorable.
• B)Permanent; unfavorable.
• C)Temporary; favorable.
• D)Temporary; unfavorable.

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Definitions:

Adolescent Dependence

The reliance of teenagers on parents, caregivers, or substances for psychological or material support.

Responsible Adulthood

The stage in life where an individual takes accountability for their actions and fulfills societal and personal responsibilities.

Puberty

A developmental stage during which children's bodies begin to mature into adults, marked by hormonal changes and physical development.

Primary Sex Characteristics

The physical structures directly involved in reproduction, present from birth and developed further during puberty.