The ability to visualize an object, concept, or action not actually present is referred to as:

Kershaw Mfg. depreciates using the straight-line method for financial statement purposes and an accelerated method for tax purposes. The cumulative difference between the two methods grew in the current year. How would Kershaw ADJUST THE PP&E account from the straight-line to the tax depreciation method?

a. Multiply the portion of the deferred tax liability relating to PP&E by the tax rate and add that amount to reported PP&E. b. Divide the portion of the deferred tax liability relating to PP&E by the tax rate and deduct that amount from reported PP&E. c. Multiply the portion of the deferred tax liability relating to PP&E by the tax rate and deduct that amount from reported PP&E. d. Divide the portion of the deferred tax liability relating to PP&E by the tax rate and add that amount to reported PP&E.

Every Texas real estate brokerage firm is required to

A) keep transaction records for three years. B) have a licensed broker who is the broker for the firm. C) maintain escrow account records for five years. D) display signage at the office location.