B&B Inc.'s taxable income is computed as follows:

Book income before tax	$	9,882,590
Net permanent differences		447,600
Net temporary differences		(802,100	)
Taxable income	$	9,528,090

B&B's tax rate is 21%. Which of the following statements is true?

Multiple Choice

A) The temporary differences caused a $168,441 net decrease in B&B's deferred tax liabilities.

B) The permanent differences caused a $93,996 net decrease in B&B's deferred tax assets.

C) The temporary differences caused a $168,441 net increase in B&B's deferred tax liabilities.

D) The permanent differences caused a $93,996 net increase in B&B's deferred tax assets.

Answer rating: 100% (QA)

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