Deferred Taxes Overview

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Question: Over time the balance in the deferred tax account was not derivable-exactly where did this “plug” figure come from?

Question: Tax rates have been known to change-what amount should the asset/liability be recorded at? Present rates? Future? Tax law has become very complex!

Question: If you have a deferred tax asset the implication is that you will have future income to offset this, but how likely is this?

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