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Which of the Following Temporary Differences Creates a Deferred Tax

Question 39

Multiple Choice

Which of the following temporary differences creates a deferred tax liability?


A) Accumulated tax depreciation in excess of book depreciation on a building.
B) Accumulated tax amortization in excess of book amortization on a customer list.
C) Compensation expensed for book purposes but deferred for tax purposes.
D) Both accumulated tax depreciation in excess of book depreciation on a building and accumulated tax amortization in excess of book amortization on a customer list create a deferred tax liability.

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