Multiple Choice
Uqua Inc. purchased a depreciable asset for $189,000. First-year depreciation for book purposes was $22,000, and first-year MACRS depreciation was $37,800. If Uqua's marginal tax rate is 21%, the excess tax depreciation results in a $3,318:
A) Deferred tax asset
B) Deferred tax liability
C) Permanent favorable book/tax difference
D) Permanent unfavorable book/tax difference
Correct Answer:
Verified
Correct Answer:
Verified
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