AmStore Incorporated sold some of its heavy machinery at a gain. AmStore used the ...
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AmStore Incorporated sold some of its heavy machinery at a gain. AmStore used the straightline method for financial accounting depreciation and immediate expensing for tax cost recovery. If accumulated depreciation for financial accounting purposes is less than accumulated depreciation for tax reporting purposes, what is the nature of the booktax difference associated with the gain on the sale? A Permanent; favorable. B Permanent; unfavorable. C Temporary; favorable. D Temporary; unfavorable.
AmStore Incorporated sold some of its heavy machinery at a gain. AmStore used the
straightline method for financial accounting depreciation and immediate expensing for tax
cost recovery. If accumulated depreciation for financial accounting purposes is less than
accumulated depreciation for tax reporting purposes, what is the nature of the booktax
difference associated with the gain on the sale?
A Permanent; favorable.
B Permanent; unfavorable.
C Temporary; favorable.
D Temporary; unfavorable.
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