Deferred Taxes Overview

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• Differences can arise from (among others):
  • Depreciation
  • Warranty treatments
  • Long-term construction
  • Installment sales
• If your tax expense was > tax payable you had a deferred tax liability (then called deferred tax credit) (The balancing figure was the deferred tax account.)
• If your tax expense was < tax payable you had a deferred tax asset (then called deferred tax debit) (Again the balancing figure was the deferred tax account.)

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