Which one of the following transactions would result in the creation of a noncurrent deferred tax liability?

Question

Quizplus · Accepted Answer

Using an accelerated depreciation method for income tax purposes and the straight-line method for financial reporting purposes creates a timing difference between when the tax deduction is taken and when the expense is recognized on the financial statements. This timing difference results in a deferred tax liability as the company will eventually have to pay taxes on the accelerated depreciation taken in prior periods.

Which One of the Following Transactions Would Result in the Creation