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.
-Premiums paid on life insurance policies covering key corporate executives.

Question

Quizplus · Accepted Answer

Premiums paid on life insurance policies covering key corporate executives generally do not create a deferred tax asset or liability because they are not deductible for tax purposes, and thus, do not give rise to temporary differences that would result in deferred taxes.

Listed Below Are Five Independent Situations