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.
-The nondeductible portion of travel and entertainment expenses.

Question

Quizplus · Accepted Answer

The nondeductible portion of travel and entertainment expenses does not create a deferred tax asset or liability because it is permanently nondeductible for tax purposes, affecting only the period in which it occurs.

Listed Below Are Five Independent Situations