Which of the following is an example of a temporary difference that would result in a deferred tax liability?

Question

Quizplus · Accepted Answer

Using straight-line depreciation for accounting purposes results in lower income tax deductions compared to accelerated rate depreciation, which results in higher income tax deductions. Therefore, when using straight-line depreciation for accounting purposes, taxable income will be higher in the earlier years when compared to pretax accounting income, resulting in a deferred tax liability.

Which of the Following Is an Example of a Temporary