Which of the Following Circumstances Creates a Future Taxable Amount

Multiple Choice

Which of the following circumstances creates a future taxable amount?

A) Service fees collected in advance from customers: taxable when received, recognized for financial reporting when earned.
B) Accrued compensation costs for future payments.
C) Straight-line depreciation for financial reporting and accelerated depreciation for tax reporting.
D) Investment expenses incurred to obtain tax-exempt income (not tax deductible) .