Pratt Inc Reported $198,300 Book Depreciation on Its Financial Statements and and Deducted

Multiple Choice

Pratt Inc. reported $198,300 book depreciation on its financial statements and deducted $256,000 MACRS depreciation on its tax return. As a result, Pratt has a $57,800:

A) Unfavorable permanent book/tax difference
B) Favorable permanent book/tax difference
C) Unfavorable temporary book/tax difference
D) Favorable temporary book/tax difference