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Unformatted text preview: Temporary differences give rise to deferred tax assets (taxes will be lower in future years) and deferred tax liabilities (taxes will be larger in future years). Permanent differences —arise because some items appear on the tax return but never on the financial report to shareholders or appear on the financial report to shareholders but never on the tax return. B. The information in Illustration 19-22 on page 1001 identifies the most important sources of temporary differences producing deferred tax assets and liabilities. C. The information in Illustration 19-24 on page 1002 identifies the most important sources of permanent differences 1...
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This note was uploaded on 04/09/2011 for the course MGMT 351 taught by Professor Staff during the Winter '08 term at Purdue.
- Winter '08