Which of the Following Temporary Differences Creates a Deferred Tax

question 20

Multiple Choice

Which of the following temporary differences creates a deferred tax liability?

• A) Accumulated tax depreciation in excess of book depreciation on a building.
• B) Accumulated tax amortization in excess of book amortization on a customer list.
• C) Compensation expensed for book purposes but deferred for tax purposes.
• D) Both "Accumulated tax depreciation in excess of book depreciation on a building" and "Accumulated tax amortization in excess of book amortization on a customer list" create a deferred tax liability."

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Definitions:

Medical Abbreviation

Shortened forms of words or phrases used in the medical field for ease of communication.

Cerebrovascular Accident

Cerebrovascular Accident, commonly known as a stroke, occurs when the blood supply to part of the brain is interrupted or reduced, causing brain cells to die.

Medical Abbreviation

Shortened forms of words or phrases used in the medical field to streamline communication.

Cancer

Cancer refers to a collection of illnesses marked by the unchecked proliferation and dissemination of atypical cells within the body, which can result in death if left untreated.