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:

Posterior Communicating Artery

A blood vessel that connects the internal carotid artery and the posterior cerebral artery at the base of the brain.

Internal Carotid Artery

A major artery that supplies blood to the brain, eyes, and other parts of the head.

Pulmonary Artery

The artery carrying blood from the right ventricle of the heart to the lungs for oxygenation.

Oxygenated Blood

Blood that is rich in oxygen and is carried from the lungs to the heart and then distributed to the rest of the body.