The Correct Method for Calculating the Amount of a Deferred

question 4

Multiple Choice

The correct method for calculating the amount of a deferred tax liability or asset may be expressed as a formula as follows:

• A) (Carrying amount of assets or liabilities - tax bases of assets or liabilities) * tax rate.
• B) Carrying amount of assets or liabilities - (tax bases of assets or liabilities * tax rate).
• C) Carrying amount of assets or liabilities - tax bases of assets or liabilities * tax rate.
• D) Carrying amount of assets or liabilities - tax bases of assets or liabilities.
• E) None of the given answers.

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Definitions:

Time Period

A specific interval of time marked by a start and end point, often used for purposes of study, assessment, or to denote durations.

Offeree

In contract law, the person to whom an offer is made.

Illusory Promise

A promise that does not obligate the promisor to anything.

Legally Enforceable Promise

A commitment or agreement that is recognized by law and can be upheld in a court of justice.