Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is the impact on deferred tax asset and defer

What is the impact on deferred tax asset and deferred tax liability if a company records...

70.2K

Verified Solution

Question

Finance

What is the impact on deferred tax asset and deferred taxliability if a company records accelerated depreciation for taxpurposes and straight-line depreciation for book purposes?

Answer & Explanation Solved by verified expert
4.2 Ratings (502 Votes)
When a company is using an accelerated depreciation method the tax calculated will reduce in comparison to the tax calculated using straight line depreciation method This will happen for few    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What is the impact on deferred tax asset and deferred taxliability if a company records accelerated depreciation for taxpurposes and straight-line depreciation for book purposes?

Other questions asked by students

Q

In three or fewer sentences, explain how clusters identified from ADMIXTURE analysis of a few populations...

Biology
Q

1. Orthostatic hypotension is defined as the failure to maintain a fairly constant blood pressure during...

Medical Sciences
Q

Describe the different types of problem trainees and how a trainer might manage them during training

General Management
Q

Which of the followingstructures found inautotrophs is theclosest analog tomitochondria?A. ATP synthaseB. StromaC. Golgi ApparatusD....

Biology
Q

City officials in Sacramento conducted a survey asking voters how they plan to vote in...

Statistics
Q

7 Are the planes x 3y 2z 2 and 2x 6y 4z 5 parallel If...

Algebra
Q

The discussion question has 6 parts and all parts will count toward your overall score...

Algebra
Q

Required information [The following information applies to the questions displayed below.] Lina purchased a new...

Accounting
Q

Monty Manufacturing has five activity cost pools and two products (a budget tape vacuum and...

Accounting
Q

Suppose the current exchange rate is $177/2, the interest rate in the United States is...

Finance
Q

Below are amounts for two companies: For each company, calculate the receivables turnover ratio. Which...

Accounting
Q

AllCity, Inc., is financed 40% with debt, and 60% with common stock. Its pretax cost...

Finance