Answered: investments

Business

Accounting

investments

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Margery Corp. received $100,000 in interest from a bank this year, $80,000 of municipal bond interest. Margery Corp. paid $5,000 of interest expense on loans it secured to purchase the municipal bonds.

What is the total, net BTD associated with these investments?

Group of answer choices

$75,000 favorable, permanent

$85,000 favorable, permanent

$80,000 favorable, permanent

$85,000 favorable, temporary

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