If an expense is recognized for financial reporting purposes but not allowed as a bona-fide deduction for tax purposes, this results in a deferred tax asset.

Name: If an expense is recognized for financial reporting purposes but not allowed as a bona-fide deduction for tax purposes, this results in a deferred tax asset.
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If an expense is recognized for financial reporting purposes but not allowed as a deduction for tax purposes, this results in a deferred tax liability, not a deferred tax asset.

If an Expense Is Recognized for Financial Reporting Purposes but Not