Deferred income taxes
At the end of its first year of operations, Harding Construction, Inc., included in its statement of financial position a noncurrent liability entitled "Deferred Taxes."
(a) Briefly explain what deferred taxes represents, including how this liability came into existence and whether such an item is generally perceived as favorable or unfavorable from company management's point of view.
(b) If Harding Construction, Inc., is a successful, growing business, would you expect the liability for deferred taxes to increase or decrease over the next few years? Explain.

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The Answer of Deferred income taxes
At the end of its first year of operations, Harding Construction, Inc., included in its statement of financial position a noncurrent liability entitled "Deferred Taxes."
(a) Briefly explain what deferred taxes represents, including how this liability came into existence and whether such an item is generally perceived as favorable or unfavorable from company management's point of view.
(b) If Harding Construction, Inc., is a successful, growing business, would you expect the liability for deferred taxes to increase or decrease over the next few years? Explain.

Deferred Income Taxes At the End of Its First Year of Operations, Harding