Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax liability?

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Depreciation early in the life of an asset creates a temporary difference between the amount of depreciation expense recognized for financial reporting purposes and the amount of depreciation deductible for tax purposes. This results in a deferred tax liability because the taxable income will be lower in future periods due to the higher tax deductions related to depreciation.

Which of the Following Differences Between Financial Accounting and Tax