Question: A corporation reported $ 2 0 0 , 0 0 0 book depreciation on its financial statements and deducted $ 3 5 0 , 0

A corporation reported $200,000 book depreciation on its financial statements and deducted $350,000,000 MACRS depreciation on its tax return. As a result, the company has a $150,000:
Favorable temporary book/tax difference
Unfavorable permanent book/tax difference
Favorable permanent book/tax difference
Unfavorable temporary book/tax difference

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