Which of the Following Will Result in a Deferred Tax

question 7

Multiple Choice

Which of the following will result in a deferred tax liability?

• A) A net operating loss carryover.
• B) Reporting an unrealized gain for a trading security.
• C) Reporting an unrealized gain for an available-for-sale security.
• D) Reporting an expected loss on from a lawsuit in the income statement, when it cannot be reported on the tax return until it is actually incurred.

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Definitions:

Chemical Carcinogen

A substance or agent that is known to cause cancer by altering the DNA within cells after exposure.

Liver Cancer

A disease characterized by the malignant growth of cells in the liver, often resulting from chronic liver diseases like hepatitis or cirrhosis.

Peyer's Patches

Specialized lymphoid nodules in the small intestine's lining that are part of the immune system, helping in the defense against pathogens.