The tax base of a liability is its carrying amount on the statement of financial
ID: 2540163 • Letter: T
Question
The tax base of a liability is its carrying amount on the statement of financial positionA) increased by any amount that will be deductible for tax purposes in future periods.
B) less any amount that will not be taxable in the future.
C) plus any amount that will not be taxable in the future.
D) reduced by any amount that will be deductible for tax purposes in future periods.
The tax base of a liability is its carrying amount on the statement of financial position
A) increased by any amount that will be deductible for tax purposes in future periods.
B) less any amount that will not be taxable in the future.
C) plus any amount that will not be taxable in the future.
D) reduced by any amount that will be deductible for tax purposes in future periods.
The tax base of a liability is its carrying amount on the statement of financial position
A) increased by any amount that will be deductible for tax purposes in future periods.
B) less any amount that will not be taxable in the future.
C) plus any amount that will not be taxable in the future.
D) reduced by any amount that will be deductible for tax purposes in future periods.
Explanation / Answer
Answer
The tax base of a liability is its carrying amount on the statement of financial position can be reduced by any amount that will be deductible for tax purposes in future periods
As Future Deduction for tax purposes can result in the decrease in the Tax base of a liability
Answer = D