The following information is available for Ryan Corporation: Assets at cost-$260,000; Accumulated depreciation-$80,000; Accumulated CCA-$90,000; meals and entertainment recorded in the books-$12,000; golf dues paid-$5,000.Based on this information and a tax rate of 45%, what is the amount of the temporary difference?

Question

Quizplus · Accepted Answer

The temporary difference is the difference between the tax base and the carrying amount of an asset or liability. Here, the accumulated CCA ($90,000) exceeds the accumulated depreciation ($80,000) by $10,000, creating a temporary difference of $10,000.

The Following Information Is Available for Ryan Corporation: Assets at Cost-$260,000;