Shank Corporation Uses a Different Depreciation Method for Its Income

question 115

Multiple Choice

Shank Corporation uses a different depreciation method for its income tax return than it does for its income statement. Consequently, the corporation has a credit balance in its Deferred Income Taxes account. This balance should be classified as a

• A) current asset.
• B) long-term liability.
• C) current liability.
• D) long-term asset.

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Definitions:

Systematic Fashion

Refers to doing things in a methodical, organized way, typically to achieve efficiency and to ensure that no steps are missed.

Sample Size

The number of individuals or observations included in a study, which can affect the reliability and validity of the research findings.

Temper Tantrums

Emotional outbursts, often observed in children, that are characterized by yelling, crying, and aggressive or defiant behavior.

Anal Stage

A phase in Freudian psychosexual development centered around the child's control over bowel movements, typically occurring from age 18 months to three years.