Solved

Due to Differences Between Depreciation Reported in the Income Statement

Question 98

Multiple Choice

Due to differences between depreciation reported in the income statement and depreciation deducted for tax purposes Lucas Corp. has two million dollars in temporary differences that will increase taxable income next year. Assuming that Lucas has no other temporary differences, deferred income taxes should be reported in this year's ending balance sheet as a:


A) Current deferred asset.
B) Noncurrent deferred tax liability.
C) Current deferred tax liability.
D) Noncurrent deferred tax asset.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents