Question:Which of the following scenarios is NOT an example of a situation resulting in a temporary difference and which, therefore, would NOT result in the debiting or crediting of a deferred income tax account?
A A company uses straight-line depreciation for book purchases and ACRS for tax purposes.
B Estimated warranty costs are expensed in the year of sale but warranty costs are deducted for tax purposes in the year when repairs are made.
C In its financial reports, a company reports interest revenue earned on tax-exempt municipal bonds held as assets.
D A company uses the percentage of completion basis for book purposes, but uses the completed contract basis for tax purposes.
+ AnswerA
+ Explanation
+ Report
Total Preview: 579