Question: QUESTION 2 T he following statements are incorrect, except for: a. When the carrying amount of an asset is larger than its tax base, a

QUESTION 2

  1. The following statements are incorrect, except for:

a.

When the carrying amount of an asset is larger than its tax base, a deferred tax asset should be recognized.

b.

When the carrying amount of a liability is higher than its tax base, a deferred tax liability should be recognized.

c.

A valuation allowance of deferred tax asset is a reduction that is derived from the probability of the realization of the asset.

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