BTW Corporation has taxable income in the current year that can be offset with an NOL from a previous year.What is the nature of the book-tax difference created by the net operating loss carryover deduction in the current year?

Question

Quizplus · Accepted Answer

The book-tax difference created by the net operating loss carryover deduction in the current year is temporary because the NOL carryover is deductible for tax purposes but is not recognized for book purposes until future years when the related tax benefit is probable. The book-tax difference is also favorable because it reduces taxable income in the current year, resulting in lower tax liabilities.

BTW Corporation Has Taxable Income in the Current Year That