Which One of the Following Transactions Would Result in the Creation

Multiple Choice

Which one of the following transactions would result in the creation of a noncurrent deferred tax liability?

A) interest received on municipal bonds
B) a contingent liability expensed in the current period that is expected to require a cash payment in three years
C) royalties received in advance that are taxable when received, but that will be earned within the next three months
D) using an accelerated depreciation method for income tax purposes and the straight-line method for financial reporting purposes