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Suppose That Our GDP Rose from $20 Trillion in the Year

question 317

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Suppose that our GDP rose from $20 trillion in the year 2012 to $37 trillion in the year 2013.


Definitions:

Deferred Tax Liability

A tax obligation that arises when there are temporary differences between the book value and the tax value of assets and liabilities.

Deferred Tax Asset

A Deferred Tax Asset arises when a company pays more tax to the government than it owes in its financial statements, which can be used to reduce tax liability in future periods.

Adjusted

Refers to the modification of financial statements to provide a more accurate picture by removing the effects of non-recurring transactions or events.

Permanent Differences

Differences between taxable income and accounting income that are not temporary and hence do not reverse over time.

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