Clayton Corporation Receives $100,000 to Provide Garbage Service for the Next

Multiple Choice

Clayton Corporation receives $100,000 to provide garbage service for the next four years:

A) Clayton must recognize income over the four years for both tax and accounting purposes.
B) Clayton can include the entire $100,000 in income currently for both tax and accounting purposes.
C) The $100,000 creates a permanent difference between tax and accounting income.
D) The $100,000 creates a timing difference between tax and accounting income.