Which of the following factors may cause a difference between book profit and taxable income?
A)The company sells shares right before the end of the year.
B)The company uses straight- line depreciation for books and accelerated depreciation for tax.
C)The company has a deposit in transit at year- end.
D)The company pays its federal income taxes quarterly as opposed to annually.

Question

Quizplus · Accepted Answer

The use of different depreciation methods for book and tax purposes can lead to differences in reported profit and taxable income.

Which of the Following Factors May Cause a Difference Between