Which statement(s) is (are) true regarding deferred taxes?

I. Deferred taxes should be based on applicable tax rates on the balance sheet date.
II. Deferred taxes should be measured at the tax rate that is expected to apply when the asset is realized or the liability settled.
III. Deferred taxes should be recognized using the present value of amounts that are expected to be recovered or settled in the future.

Correct Answer: II only

III. The face value should be used.