An unfavorable temporary book/tax difference generates a deferred tax asset.

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An unfavorable temporary book/tax difference (where tax expense exceeds book expense) results in a deferred tax asset since it represents a future tax benefit for the company. This is because the company will be able to deduct the excess tax expense on its tax return in a future year, which will reduce its taxable income and tax liability, resulting in a tax benefit.

An Unfavorable Temporary Book/tax Difference Generates a Deferred Tax Asset