Question

In: Accounting

34. Which of the following items is a temporary difference between tax income and financial accounting...

34. Which of the following items is a temporary difference between tax income and financial accounting income?

A) production activities deduction

B) proceeds on life insurance on a key executive

C) dividends-received deduction

D) depreciation

Solutions

Expert Solution

Dear student...Thank you for using chegg...answer is D) depreciation....

Depreciation is a deductible temporary difference that will yield amounts that can be deducted in the future when determining taxable profit or loss i.e. it is adjusted in future years and thats why it is called temporary.

ekkarill92 answered 2 years ago
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