Of the Following Temporary Differences, Which One Ordinarily Creates a Deferred

question 128

Multiple Choice

Of the following temporary differences, which one ordinarily creates a deferred tax asset?

• A) Intangible drilling costs.
• B) MACRS depreciation.
• C) Rent received in advance.
• D) Installment sales.

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Definitions:

Instantaneous Forms

Documents or agreements that become effective immediately upon execution or fulfillment of certain conditions.

Mirror Image Rule

A principle in contract law that requires the acceptance of a contract offer to be identical to the offer for a legally binding agreement to be formed.

Material Difference

A substantial and significant variation or discrepancy that affects the value or function of an item or agreement.

Grumbling Acceptance

Reluctant or unwilling acceptance of an outcome or condition while expressing dissatisfaction or discontent.