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At the December 31, 2010 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2011, a future taxable amount will occur and
Choose one answer.
a. total income tax expense for 2011 will exceed current tax expense for 2011.
b. Unruh will record a decrease in a deferred tax liability in 2011.
c. Unruh will record an increase in a deferred tax asset in 2011.
d. pretax financial income will exceed taxable income in 2011.
Investment in working capital needed to service the project is treated in the net present value method as:
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