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Part $1$

When do deferred tax liabilities$$ occur?

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Part $1$

A$.$

When the tax basis of a liability is higher than its book$$ basis, we have a deferred tax liability.$$ Alternatively, when the book basis of an asset is higher than its tax$$ basis, we have a deferred tax liability.

B$.$

Deferred tax liabilities occur when the book basis remains unchanged for more than two years.

C$.$

Deferred tax liabilities occur when the tax basis and the book basis are the same.

D$.$

When the tax basis of a liability is lower than its book$$ basis, we have a deferred tax liability.$$ Alternatively, when the book basis of an asset is lower than its tax$$ basis, we have a deferred tax liability.