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Basic Question 0 of 20
Bay Tree Golf Corp. recorded a deferred income tax liability in 2015. The amount resulted from Bay Tree's book income exceeding its taxable income. The liability is expected to reverse in 2020, when taxes will become currently payable. At the end of 2015, which one of the following describes the valuation of deferred income taxes payable?
B. Amortized cost
C. Current market value
A. Historic cost
B. Amortized cost
C. Current market value
User Contributed Comments 1
| User | Comment |
|---|---|
| achu | Historic cost is essentially nominal (undiscounted) cost |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain and calculate how adjusting for items of pension and other post-employment benefits that are reported in the notes to the financial statements affects financial statements and ratios;
interpret pension plan note disclosures including cash flow related information;
CFA® 2025 Level II Curriculum, Volume 2, Module 11.