At the beginning of the year, a company purchased a fixed asset for $500,000 with no expected residual value. The company depreciates similar assets on a straight line basis over 10 years, whereas the tax authorities allow declining balance depreciation at the rate of 15% per year. In both cases, the company takes a full year's depreciation in the first year and the tax rate is 40%. Which of the following statements concerning this asset at the end of the year is most accurate?
The temporary difference is the difference between the net book value (NBV) of the asset for accountino ourooses and the NBV for taxes
| NBV accounting | [500,000-(500,000/10)] | $450,000 |
| NBV taxes | [500,000-0.15×（500,000）】 | $425,000 |
| Temporary difference | $25,000 |