Reference no: EM132823058

Temporary differences result in future taxable or deductible amounts when the related asset or liability is recovered or settled. Some differences, though, are not temporary.

Problem 1: What events create permanent differences?

Problem 2: What effect do these have on the determination of income taxes payable?

Problem 3: What effect do these have on the determination of deferred income taxes?

Problem 4: What are three examples of differences with no deferred tax consequences?

Problem 5: How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?