The taxpayer should use ASC 740-30 (APB 23) income deferral only when the tax rates that apply to the subsidiary are less than those of the applicable U.S. income tax rate.

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ASC 740-30 (APB 23) income deferral is generally used when the tax rates of the foreign subsidiary are lower than those of the applicable U.S. income tax rate, allowing for tax savings by deferring the recognition of income.

The Taxpayer Should Use ASC 740-30 (APB 23) Income Deferral