Discussion Post
• What is FASB Codification 740-10-25-6? ( predecessor standard SFAS 109). How the temporary differences between tax and book income are reported. Discuss with suitable examples. You will find a document in the Files section with the FASB logins.
• What is deferred tax liability and what is deferred tax asset. Provide examples and hypothetical numbers to support your answer. As a clue the Straight line depreciation charged in the books is $3,000 and the MACRS depreciation charged for tax purpose is $,4000. The excess depreciation of $1,000 charged for tax purpose results in a deferred tax liability. If the future year's tax rate is 30% the deferred tax liability is $1,000*.3=$300 Do you have any other examples?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.