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The Tax Base of a Liability Is Its Carrying Amount

Question 12

Multiple Choice

The tax base of a liability is its carrying amount on the SFP


A) reduced by any amount that will be deductible for tax purposes in future periods.
B) increased by any amount that will be deductible for tax purposes in future periods.
C) less any amount that will not be taxable in the future.
D) plus any amount that will not be taxable in the future.

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