A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income tax?
Type of Difference Deferred Tax
Option 1 Permanent Asset
Option 2 Permanent Liability
Option 3 Temporary Asset
Option 4 Temporary Liability
A. Option 4
B. Option 1
C. Option 2
D. Option 3
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