Choose the best statement with respect to tax rates.
A) The tax rate used to record a deferred income tax asset or liability should be the enacted tax rate at the beginning of the year.
B) The current tax rate should be used to record a deferred income tax asset or liability.
C) The projected tax rate should be used to record a deferred income tax asset or liability.
D) Once recorded, the deferred income tax asset must be maintained at a rate expected to be in effect when the carry forward is utilized.

Question

Quizplus · Accepted Answer

Deferred income tax assets and liabilities should be measured using the tax rates expected to be in effect when the temporary differences reverse or when the carryforwards are utilized.

Choose the Best Statement with Respect to Tax Rates