Multiple Choice
Deitle Inc. manufactures small appliances. This year, Deitle capitalized $3,679,000 indirect costs to inventory for book purposes and $3,865,000 indirect costs to inventory for tax purposes. The consequence of the different accounting methods is a $186,000:
A) Permanent unfavorable book/tax difference
B) Permanent favorable book/tax difference
C) Temporary unfavorable book/tax difference
D) Temporary favorable book/tax difference
Correct Answer:
Verified
Correct Answer:
Verified
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