Explain how to measure deferred tax assets and liabilities

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AICPA Adapted Chris Green, CPA, is auditing Rayne Co.'s 2016 financial statements. For the year ended December 31, 2016, Rayne is applying GAAP for income taxes. Rayne's controller, Dunn, has prepared a schedule of all differences between financial statement and income tax return income. Dunn believes that as a result of pending legislation, the enacted tax rate at December 31, 2016, will be increased for 2017. Dunn is uncertain which differences to include and which rates to apply in computing deferred taxes. Dunn has requested an overview of GAAP from Green.

Question 1: Identify objectives of accounting for income taxes.

Question 2: Explain how to measure deferred tax assets and liabilities.

Question 3: Explain how to measure deferred income tax expense or benefit.

Reference no: EM132578341

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