Sometimes a Temporary Difference Will Produce Future Deductible Amounts

question 131

Essay

Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts. Describe at least one situation that has this effect. How are future deductible amounts recognized in the financial statements?

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Definitions:

Rhonch

A low-pitched, snore-like sound heard upon auscultation of the chest, often caused by obstruction of the airways.

Eupnea

Normal, unlabored breathing or respiratory activity.

Eu-

A prefix meaning good, well, true, or genuine.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.