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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

  • 1)The permanent differences caused a $16,365 net increase in Goff's deferred tax liabilities.

  • 2)The permanent differences caused a $16,365 net increase in Goff's deferred tax assets.

  • 3)The temporary differences caused a $99,792 net increase in Goff's deferred tax assets.

  • 4)The temporary differences caused a $99,792 net increase in Goff's deferred tax liabilities.

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