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Adoption laws vary widely from state to state.
Depreciation Expense
An accounting method that allocates the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
Temporary Difference
A discrepancy between the tax basis of an asset or liability and its carrying amount on the balance sheet, which will eventually settle and affect taxable income.
Book Income
A company's income as reported in its financial statements, representing the difference between revenues and expenses.
Income Tax Rate
The portion of a person's or company's earnings that is handed over to the state in the form of taxes.
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