alleryStart learning →When judging future taxable profit, an entity ignores taxable amounts from deductible differences that will:
AReverse in this year
BRelate to goodwill
COriginate in later years
DBe settled in cash
Answer & Solution
Correct answer: C. Originate in later years
Assets from those future deductible differences will themselves need future taxable profit, so they cannot be counted as its source.
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