If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is _____. higher ; net deferred tax expense lower ; current tax expense lower ; current tax benefit higher ; net deferred tax benefit

If the increase in deferred tax asset is than the increase in deferred tax liability, there is _. higher ; net deferred tax expense lower ; current tax expense lower ; current tax benefit higher ; net deferred tax benefit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 12GI

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Question

If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is _____.

higher ; net deferred tax expense

lower ; current tax expense

lower ; current tax benefit

higher ; net deferred tax benefit

Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.

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