Oxono Company realized a $74,900 gain on the exchange of one asset for another asset (no cash was included in the exchange) . The assets were like-kind properties. Oxono reported the gain as revenue on its financial statements. Which of the following is true?
A) The exchange resulted in a favorable temporary book/tax difference.
B) The exchange resulted in a favorable permanent book/tax difference.
C) The exchange resulted in an unfavorable temporary book/tax difference.
D) The exchange resulted in an unfavorable permanent book/tax difference.
Correct Answer:
Verified
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