medium · Investment Banking
Which of the following would cause a company to have a Deferred Tax Liability (DTL)?
- Paying more cash taxes than the reported tax expense on the income statement.
- Having a large Net Operating Loss (NOL) carryforward to offset future taxable income.
- Recognizing a book loss on an asset sale that is not yet deductible for tax purposes this period.
- Using accelerated depreciation for tax purposes and straight-line for book purposes.
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