1. Legislation was recently passed resulting to changes in income tax rates. The effect of the legislation...
Question:
1. Legislation was recently passed resulting to changes in income tax rates. The effect of the legislation on deferred tax balances should:
Group of answer choices
Result in an adjustment of deferred tax balances in the year the legislation was enacted
Be reported as a prior period adjustment, restating previously issued financial statements
Be disclosed, but will not result in any adjustment of deferred tax balances
None of the above
2.
A net operating loss cannot be carried-back to prior periods, and will therefore be carried-forward. A carry-forward of a net operating loss will result in:
Group of answer choices
A current tax receivable for the tax refund to be received
A deferred tax asset, net of any valuation allowance
A deferred tax liability
None of the above
Expert Answer:
The detailed answer for the above question is provided below Question 1 Effect of Legislation on Deferred Tax Balances Correct Answer Be disclosed but ... View the full answer
