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The Deferred Income Tax Liability

Question 84

Multiple Choice

The deferred income tax liability:


A) Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules.
B) Is a contingent liability.
C) Can result in a deferred income tax asset.
D) Is never recorded.
E) Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.

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