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kvasek [131]
3 years ago
10

Davison Company determined that the book basis of its net accounts receivable was less than the tax basis of its net accounts re

ceivable by $800,000 due to a difference in the allowance for bad debts account. This basis difference is characterized as: A. Deductible temporary differenceB. Taxable temporary differenceC. Favorable permanent differenceD. Unfavorable permanent difference
Business
1 answer:
arsen [322]3 years ago
5 0

Answer: the correct answer is A. Deductible temporary difference

Explanation:

The future tax deduction created by the write-off of bad debts will create a future tax benefit and will be recorded on the balance sheet as a deferred tax asset.

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Answer:

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Explanation:

3 0
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One year​ ago, your company purchased a machine used in manufacturing for . You have learned that a new machine is available tha
Kazeer [188]

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Yes it would be profitable to replace a year old machine.

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6 0
3 years ago
Financial Crisis
lions [1.4K]

Answer:

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Answer:

C) He will temporarily have less money in his bank account.

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3 0
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