Matrix and Associates Reports Depreciation Expense of $100,000 but Deducts

Multiple Choice

Matrix and Associates reports depreciation expense of $100,000 but deducts $150,000 depreciation on its tax return.Which of the following statements is correct?

A) Matrix is breaking the law
B) Matrix will report a deferred tax asset
C) Matrix will report a deferred tax liability
D) Matrix will report income tax expense equal to income tax payable