Due to Differences Between Depreciation Reported in the Income Statement

question 20

Multiple Choice

Due to differences between depreciation reported in the income statement and depreciation deducted for tax purposes Lucas Corp. has two million dollars 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:

Nominal

Relating to variables that consist of categories or labels with no inherent order or ranking among them.

Gender of Child

A demographic variable indicating the biological sex of a child.

Samples and Populations

Refers to the process of selecting a subset (sample) from a larger group (population) to make inferences about the whole.

Nominal

Pertaining to data that consists of names, labels, or categories without any inherent order or ranking.