McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 49

Which of the following book-tax basis differences results in a deductible temporary difference?
a.Book basis of a fixed asset exceeds its tax basis
b.Book basis of a pension-related liability exceeds its tax basis
c.Prepayment of income included on the tax return but not on the income statement (the transaction is recorded as a liability on the balance sheet)d.All of the above result in a deductible temporary difference
e.Both B and C result in a deductible temporary difference