Senior Straight-line

Test your Senior-level Depreciation Methods Straight Line skills in Valuation Measurement Methods. This timed assessment evaluates your expertise in Accounting.

Duration: 5 minutes

•40 questions

Time Remaining: 05:00

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Question 1 of 40Assessment

A company uses straight-line depreciation for book purposes and an accelerated method for tax. This book-tax difference in the early years of an asset's life results in a:

A. Deferred tax asset, as taxable income is higher than book income.

B. Permanent difference, as total depreciation will never reconcile.

C. Deferred tax liability, as tax depreciation exceeds book depreciation.

D. Valuation allowance against deferred tax assets.

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