Which of the circumstances could a deferred tax asset arise

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Problem 1: Which one of the following assets does IAS 36 Impairment of Asset not apply to?

A) equipment

B) patent

C) inventory

D) goodwill

Problem 2: A piece of machine that originally had both a carrying amount and a tax base of $4000 is revalued. Under which of the following circumstances could a Deferred tax asset arise?

A) Its carrying amount and tax base increase by the same amount

B) its carrying amount stays the same and its tax base decreases

C) its carrying amount increases and its tax base stays the same

D) its carrying amount decreases and its tax base stays the same

Reference no: EM132907524

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