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A company purchases and places a new machine in service this year. For financial statement...

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Accounting

A company purchases and places a new machine in service this year. For financial statement purposes, the machine is depreciated using the straight-line method. For tax purposes, the machine is expensed immediately. The effect on the financial statements this year will be:

a. Deferred liabilities will not be impacted

b. Deferred tax liabilities will increase

c. Deferred tax liabilities will decrease

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