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:

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The condition in which a system, such as an economy or ecological system, remains consistent and balanced over time.

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The routine activities and experiences that constitute a person's everyday existence.

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