Matrix and Associates Reports Depreciation Expense of $100,000 but Deducts

question 40

Multiple Choice

Matrix and Associates reports depreciation expense of $100,000 but deducts $150,000 depreciation on its tax return.Which of the following statements is correct?

• A)Matrix is breaking the law
• B)Matrix will report a deferred tax asset
• C)Matrix will report a deferred tax liability
• D)Matrix will report income tax expense equal to income tax payable

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Definitions:

Experimental Starvation

The deliberate restriction of nutrients for research purposes, typically to study the effects of malnutrition on biological organisms.

Metabolic Rate

The rate at which the body expends energy or burns calories, crucial for maintaining basic physiological functions.

Weight Maintenance

The ability to keep one’s weight at a steady level, especially after losing weight.

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.