A company has a temporary difference due to doubtful accounts (i.e., bad debt expense). For...
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Accounting
A company has a temporary difference due to doubtful accounts (i.e., bad debt expense). For fiscal year 2012, its Income Tax Payable was $10,000 less than its Income Tax Expense.
What happened to deferred taxes in 2012?
Deferred Tax Liabilities decreased by $10,000
Deferred Tax Assets increased by $10,000
Deferred Tax Liabilities increased by $10,000
Deferred Tax Assets decreased by $10,000
There was no effect on Deferred Tax Assets or Deferred Tax Liabilities
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