Listed below are 10 causes of temporary for each temporary


Listed below are 10 causes of temporary. For each temporary difference, indicate (by letter) whether it will create future deductible amounts (D) or future taxable amounts (T). 1. Accrual of a loss contingency, tax-deductible when paid. 2. Newspaper subscriptions; taxable when received, recognized for financial reporting when earned. 3. Prepaid rent, tax-deductible when paid. 4. Accrued bond interest expense, tax-deductible when paid. 5. Prepaid insurance, tax-deductible when paid. 6. Unrealized loss from recording investments at fair value (tax-deductible when investments are sold). 7. Warranty expense; estimated financial reporting when products are sold; deducted for tax purposes when paid. 8. Advance rent receipts on an operating lease (as the lessor), taxable when received. 9. Straight-line depreciation for financial reporting; accelerated depreciation for tax purposes. 10. Accrued expense for employee post-retirement benefits, tax-deductible when subsequent payments are made.

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Financial Accounting: Listed below are 10 causes of temporary for each temporary
Reference No:- TGS01698401

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