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Basic Question 1 of 7
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 |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis;
calculate income tax expense, income taxes payable, deferred tax assets, and deferred tax liabilities, and calculate and interpret the adjustment to the financial statements related to a change in the income tax rate;
CFA® 2024 Level I Curriculum, Volume 3, Module 24.