How does the Income received from tax free government bonds effect the calculation of deferredtaxes?O It leads to the creation of a Deferred tax Asset.It leads to the creation of a Deferred tax liability.O Is a permanent difference which is disallowed.O Is a temporary difference and is deducted from taxable income.

Tax free government bonds means those bonds which pays interest which is tax free, that is not…

How does the Income received from tax free government bonds effect the calculation of deferred taxes? It leads to the creation of a Deferred tax Asset. O It leads to the creation of a Deferred tax liability. O Is a permanent difference which is disallowed. O Is a temporary difference and is deducted from taxable income.

How does the Income received from tax free government bonds effect the calculation of deferred taxes? It leads to the creation of a Deferred tax Asset. O It leads to the creation of a Deferred tax liability. O Is a permanent difference which is disallowed. O Is a temporary difference and is deducted from taxable income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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