1. Which of the following statements is incorrect?

		A company that uses an accelerated method of depreciation for tax reporting and straight-line depreciation for financial reporting purposes will create a deferred tax liability in the year the asset is acquired.
		A deferred tax asset arises when tax reporting income is less than financial reporting income.
		Differences between tax reporting income and financial reporting income could be permanent or temporary.
		Tax Cuts and Jobs Act (TCJA) reduced corporate income tax rate.