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 carryforward.

Question

Quizplus · Accepted Answer

An operating loss carryforward will create a deferred tax asset because it can be used to offset future taxable income, resulting in a lower tax liability in the future.

Listed Below Are Five Independent Situations