alleryStart learning →If goodwill's carrying amount is below its tax base, the difference gives a:
ADeferred tax liability
BDeferred tax asset
CPermanent difference
DRevaluation surplus
Answer & Solution
Correct answer: B. Deferred tax asset
A tax base above the carrying amount is a deductible temporary difference, so a deferred tax asset arises if taxable profit is probable.
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Related questions
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