Goff Inc.'s taxable income is computed as follows:
Book income before tax $ 1,016,200
Net permanent differences 77,930
Net temporary differences 475,200
Taxable income $ 1,569,330
-Goff's tax rate is 21%. Which of the following statements is true?
A) The permanent differences caused a $16,365 net increase in Goff's deferred tax liabilities.
B) The permanent differences caused a $16,365 net increase in Goff's deferred tax assets.
C) The temporary differences caused a $99,792 net increase in Goff's deferred tax assets.
D) The temporary differences caused a $99,792 net increase in Goff's deferred tax liabilities.
Correct Answer:
Verified
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