Question: Industry, Inc. recorded $ 1 0 0 , 0 0 0 of depreciation on its books in Year 1 ( its first year of business

Industry, Inc. recorded $100,000 of depreciation on its books in Year 1(its first year of business) and $150,000 of tax depreciation in Year 1. What is the cumulative difference in the book and tax basis of the assets?
Multiple choice question.
$100,000 cumulatively favorable
$50,000 cumulatively unfavorable
$50,000 cumulatively favorable

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