Listed below are five independent situations.For each situation indicate (by letter)whether it will create (A)a deferred tax asset, (L)a deferred tax liability,or (N)neither.
____ An operating loss carryback.
____ Warranty expense,tax deductible when paid.
____ Interest earned on investments in state and local government bonds.
____ Current year charitable contributions not currently deductible due to tax limitations but
which can be carried forward to future tax years.
____ Prepaid expenses,tax deductible when paid.

Question

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The Answer of Listed below are five independent situations.For each situation indicate (by letter)whether it will create (A)a deferred tax asset, (L)a deferred tax liability,or (N)neither.
____ An operating loss carryback.
____ Warranty expense,tax deductible when paid.
____ Interest earned on investments in state and local government bonds.
____ Current year charitable contributions not currently deductible due to tax limitations but
which can be carried forward to future tax years.
____ Prepaid expenses,tax deductible when paid.

Listed Below Are Five Independent Situations