Lenoci Inc.paid $310,000 for equipment three years ago.This year,it sold the equipment for $200,000.Through date of sale,accumulated book depreciation was $93,840 and accumulated tax depreciation was $147,327.Which of the following statements is true?
A) The sale results in a $53,487 favorable temporary book/tax difference.
B) The sale results in a $53,487 unfavorable temporary book/tax difference.
C) The sale results in a $53,487 unfavorable permanent book/tax difference.
D) None of the above is true.
Correct Answer:
Verified
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