Reference no: EM132973116
Problem 1: A deferred tax asset exists when
a. the book basis of assets is greater than the tax basis of assets.
b. the book basis of liabilities is greater than the tax basis of liabilities.
c. the book basis of assets is equal to the tax basis of assets.
d. the book basis of liabilities is less than the tax basis of liabilities.
e. the book basis of assets is zero and the company reports an accounting loss on its income statement
Problem 2: A deferred tax liability is created when
Select one:
a. the book basis of assets is greater than the tax basis of assets.
b. the book basis of liabilities is greater than the tax basis of liabilities.
c. the book basis of assets is equal to the tax basis of assets.
d. the book basis of assets is less than the tax basis of liabilities.
e. None of the above