Provide Some Arguments for and Against the Discounting of Deferred

question 55

Essay

Provide some arguments for and against the discounting of deferred tax amounts, and explain why these are not discounted.

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Definitions:

Equity of Redemption

A mortgagor’s right to pay off the mortgage in full, including interest.

Mortgagor

A borrower in a mortgage agreement who uses property as security for a loan.

Mortgagee

The mortgagee is the lender in a mortgage agreement, typically a financial institution, who lends money to the borrower (mortgagor) for purchasing real estate.

NINJA Loan

A loan that has been negotiated by a borrower with “no income, no job, and no assets.”