At origination which of the following temporary differences would create a deferred tax asset?
A) Tax basis of an asset exceeds its financial reporting basis.
B) Tax basis of a liability exceeds its financial reporting basis.
C) Financial reporting basis of an asset is equal to its tax basis.
D) Financial reporting basis of an asset exceeds its tax basis.

Question

Quizplus · Accepted Answer

When the tax basis of an asset exceeds its financial reporting basis, it indicates that the company will pay less tax in the future, creating a deferred tax asset.

At Origination Which of the Following Temporary Differences Would Create