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Goff Inc.'s taxable income is computed as follows: Book income before tax $ 1,016,200 Net permanent differences 77,930 Net temporary differences 475,200 Taxable income $
Goff Inc.'s taxable income is computed as follows:
Book income before tax | $ | 1,016,200 | ||
Net permanent differences | 77,930 | |||
Net temporary differences | 475,200 | |||
Taxable income | $ | 1,569,330 | ||
Goff's tax rate is 21%. Which of the following statements is true?
Multiple Choice
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1)The permanent differences caused a $16,365 net increase in Goff's deferred tax liabilities.
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2)The permanent differences caused a $16,365 net increase in Goff's deferred tax assets.
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3)The temporary differences caused a $99,792 net increase in Goff's deferred tax assets.
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4)The temporary differences caused a $99,792 net increase in Goff's deferred tax liabilities.
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