Which of the Following Factors May Cause a Difference Between

Multiple Choice

Which of the following factors may cause a difference between book profit and taxable income?

A) The company sells shares right before the end of the year.
B) The company uses straight- line depreciation for books and accelerated depreciation for tax.
C) The company has a deposit in transit at year- end.
D) The company pays its federal income taxes quarterly as opposed to annually.