A deferred income tax asset is created when the difference will result in

Name: A deferred income tax asset is created when the difference will result in
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A deferred income tax asset is created when there is a temporary difference between the book basis of an asset or liability and its tax basis. This difference will result in lower income taxes in the future, leading to the creation of a deferred tax asset. Therefore, option C is the correct answer.

A Deferred Income Tax Asset Is Created When the Difference