Wave Corporation Is Determining Its Income Tax Liability

Wave Corporation is determining its income tax liability.It has one machine that cost $30,000 with a 4-year life and no salvage value.Wave is using an accelerated depreciation method for tax purposes.For accounting purposes, Wave has decided to use the straight-line method.Which of the following statements is true?

A) There will be a temporary difference between accounting income and income for tax purposes.
B) There will be a permanent difference between accounting income and income for tax purposes.
C) Wave's accounting income and income for tax purposes will be equal.
D) Accounting income will be lower than income for tax purposes, especially in the early years of the asset's life.

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