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 35%,the excess tax depreciation results in a $5,530:
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
Q12: Research and experimental expenditures are not deductible
Q16: Inger Associates,which manufactures plastic containers,recently sold 12,000
Q18: Elcox Inc. spent $2.3 million on a
Q21: Lisle Inc.manufactures small appliances in three plants
Q53: The expense of adapting an existing asset
Q57: On May 1,Sessi Inc.,a calendar year corporation,purchased
Q60: In 2016,Rydin Company purchased one asset costing
Q65: Conant Company purchased only one item of
Q72: Firms are allowed to deduct percentage depletion
Q73: Driller Inc. has $498,200 of unrecovered capitalized