Primroseco. uses the deffered method for inter period tax allocation. Primrose reportsdeperation expense for machinery purchases for the current year using themodified accelerated cost recovery system for income tax purpose and the straight line basis for financialreporting. The tax deduction is the larger amount this year. Primrose alsoreceived rent revenues in advance this year.it inculeded these revenues in thisyears tax able income. For financial reporting, rent revenue are reported asunearned revenue, a current liability.