Which of the following would result in a future taxable amountat the time of...

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Accounting

Which of the following would result in a future taxable amountat the time of an originating temporary difference?
Question 2 options:
A)
Prepaid rental income will be included in pretax financialincome when earned in a future period.
B)
Accelerated depreciation is deducted from income tax purposesand the straight-line method is used for pretax financialincome.
C)
Interest on municipal bonds
D)
None of these items will result in a future taxable amount atthe time of the originating temporary difference.

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Solution The Answer is B Accelerated depreciation is deducted from income tax purposes and the straightline method is used for pretax financial income Explanation 1 If we use accelerated depreciation for income tax purpose then depreciation expenses as per income tax will be more than See Answer

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In: AccountingWhich of the following would result in a future taxable amountat the time of an...Which of the following would result in a future taxable amountat the time of an originating temporary difference?Question 2 options:A)Prepaid rental income will be included in pretax financialincome when earned in a future period.B)Accelerated depreciation is deducted from income tax purposesand the straight-line method is used for pretax financialincome.C)Interest on municipal bondsD)None of these items will result in a future taxable amount atthe time of the originating temporary difference.