Deferred income tax liability

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The deferred income tax liability:

a. Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules.

b. Is a contingent liability.

c. Can result in a deferred income tax asset.

d. Is never recorded.

e. Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.

Reference no: EM13137549

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