What is the temporary difference on December 31, 2018? State the amount and then whether taxable temporary difference or deductible temporary difference.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In arriving at its profit before tax for the year ended December 21,2018, Jenny Company has accrued royalties receivable of 200,000 and interest payable of 250,000. Both royalties and interest are dealt with on a cash basis in tax computations.

 

What is the temporary difference on December 31, 2018? State the amount and then whether taxable temporary difference or deductible temporary difference.

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