a company paid in the current year rent in advance for the next two years....
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Accounting
a company paid in the current year rent in advance for the next two years. in its accounting income the rent expanse will be recognized over the next 2 years. for the tax purpose the rent is deductibale when paid . this situation would require which of the follwing:
as it permanent difference , no defeered tax asset or liability should be created
creating a deffered tax asset
the above situation doesnt create any difference btween accounting and taxable income
creating a deffered tax liability
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