Goff Inc.'s taxable income is computed as follows. Goff's tax rate is 34%.Which of the following statements is true?

Question

Goff Inc.'s taxable income is computed as follows.   Goff's tax rate is 34%.Which of the following statements is true?

Quizplus · Accepted Answer

Temporary differences arise when the calculation of taxable income and financial income differs in timing. As the question only provides information about temporary differences, we can eliminate choices A and B, which refer to permanent differences. The total amount of temporary differences is $483,302-$321,734 = $161,568, which caused a net increase in deferred tax assets. Therefore, the correct answer is C.

Goff Inc'S Taxable Income Is Computed as Follows