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Moore Corp. has accumulated depreciation balances for book and tax purposes at the beginning and...

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Accounting

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Moore Corp. has accumulated depreciation balances for book and tax purposes at the beginning and end of the current year as follows: Difference (5) Book Accumulated Depreciation (S) 50,000 28,000 Tax Accumulated Depreciation (S) 65,000 36,000 -15,000 -8,000 Beginning of year Plus: Depreciation Expense Less: Retirements End of year 0 78,000 101,000 -23,000 Assume a 25% tax rate and that Moore has no other book-tax differences. Based on the above, Moore has a temporary book-tax difference that increases taxable income by $8,000 relative to book income for the current year. deferred tax expense of $8,000 for the current year. a deferred tax asset of $3,750 at the beginning of the year. a deferred tax liability of $5,750 at the end of the year

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