Which of the Following Book-Tax Basis Differences Results in a Deductible

question 91

Multiple Choice

Which of the following book-tax basis differences results in a deductible temporary difference?

• A) Book basis of an employee post-retirement benefits liability exceeds its tax basis.
• B) Book basis of a building exceeds the tax basis of the building.
• C) Book basis of an acquired intangible exceeds the tax basis of the intangible.
• D) Tax basis of a prepaid liability exceeds the book basis of the liability.

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Definitions:

Factory

A large building or series of buildings where goods are manufactured or assembled chiefly by machine.

Adaptability

The ability to adjust to new conditions, changes, or environments effectively.

Cohesion

The act of forming a united whole, often used to describe the sense of unity and togetherness within a group or team.