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Which one of the following temporary differences will result in a deferred tax asset?

A. Use of the straight-line depreciation method for financial statement purposes and the Modified Accelerated Cost Recovery System (MACRS) for income tax purposes.

B. Installment sale profits accounted for on the accrual basis for financial statement purposes and on a cash basis for income tax purposes.

C. Advance rental receipts accounted for on the accrual basis for financial statement purposes and on a cash basis for tax purposes.

D. Investment gains accounted for under the equity method for financial statement purposes and under the cost method for income tax purposes.

Accounting Auditing Financial Accounting CMA
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Date Posted: 2015/04/17
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Deleted user
by Deleted user

Answer (C) is correct.

Advance rental receipts accounted for on the accrual basis for financial statement purposes and on a cash basis for tax purposes would give rise to a deferred tax asset.

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Mohamed abd al baset mohamed mohamed
by Mohamed abd al baset mohamed mohamed , casher accountant , sun rise hotal

A_use straighte line depresation method of financial statement

Salim Vora
by Salim Vora , Senior Functional Consultant & Functional Consultant , Mastek Limited

A. Use of the straight-line depreciation method for financial statement purposes and the Modified Accelerated Cost Recovery System (MACRS) for income tax purposes.

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