The long-term liability for deferred income taxes arises because:
a. some book income will never be subject to income tax.
b. some expenses are deducted for tax purposes before they are deducted for book purposes.
c. income tax rates change from year to year.
d. the company has not paid income taxes currently due.
I read it so many times, and could not figure out for sure which it is. I guessed maybe "C", but it was just a guess.
Dear Student, The answer can be "B" and "D" The most cases of long-term differed tax is difference... View the full answer