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True or false( if it is false say why it's false):...

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True or false( if it is false say why it's false): 1. A temporary difference is the difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable amounts or deductible amounts in future years. 2. A deferred tax liability is the deferred tax consequences attributable to temporary taxable differences. 3. Temporary differences are those that will eventually be reversed, even if it takes 20 years. 4. Municipal bonds that are tax-exempt are an example of a permanent difference. 5. A permanent difference is one that will take more than 25 years to correct or reverse. 6. A deferral that will result in a reduction in taxes is known as a deferred tax benefit. 7. One objective of accounting for income tax is to recognize the amount of taxes payable or refundable for the current year. 8. When you know of a change in tax rates, you should make a change in the deferred taxes in the year you become aware of the change.

 

Paper#6476 | Written in 18-Jul-2015

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