Due to Differences Between Depreciation Reported in the Income Statement

question 132

Multiple Choice

Due to differences between depreciation reported in the income statement and depreciation deducted for tax purposes, Lucas Corp. has $2 million in temporary differences that will increase taxable income next year. Assuming that Lucas has no other temporary differences, deferred income taxes should be reported in this year's ending balance sheet as a:

• A) Current deferred asset.
• B) Noncurrent deferred tax liability.
• C) Current deferred tax liability.
• D) Noncurrent deferred tax asset.

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Definitions:

Robbery

The act of taking personal property from the possession of another against that person’s will and under threat to do great bodily harm or damage.

Forgery

The act of fraudulently making or altering a document with the intent to deceive.

Larceny

The act of taking and carrying away the personal property of another without the right to do so.

Defrauding

The act of obtaining something of value through deceit or trickery.