Rizzi Corporation sold a capital asset with a $692,000 book and tax basis for $650,000 cash. This was Rizzi's only asset sale during the year. The sale results in:

A. $42,000 unfavorable temporary book/tax difference
B. $42,000 favorable permanent book/tax difference
C. No book/tax difference
D. $42,000 unfavorable permanent book/tax difference


Answer: A

Business

You might also like to view...

Dean recently had a BRZ broadband connection installed. However, the connection was poor and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband

Which of the following was the cause of Dean's switching behavior? A) involuntary switching B) competition C) response to service failure D) service encounter failures E) inconvenience

Business

Which of the following situations does not involve an accrual?

A) Recording accrued interest. B) Recording depreciation. C) Recording unrecorded wages. D) Recording unrecorded revenue.

Business

Another term for hindsight bias is ______.

A. Hubris B. I-knew-it-all-along effect C. escalation of commitment D. overconfidence

Business

Since the main message of a negative-news message is the bad news, more space should be devoted to the refusal than to the explanations for the refusal

Indicate whether the statement is true or false

Business