One of the longest debates in accounting history is the issue of deferred taxes. The controversy began in the $1940$s and has continued, even after the FASB issued Statement of Financial Accounting Standards No$.109[$FASB ASC $740$: Income Taxes$]$ in $1992.$ At issue is the appropriate treatment of tax consequences of economic events that occur in years other than that of the events themselves.

Explain what deferred income tax assets and deferred income tax liabilities represent. Give an example of a situation that would give rise to each of these items on the balance sheet.

How are deferred tax assets and deferred tax liabilities classified and reported in the financial statements?

Explain in general terms why a company reports deferred income taxes as part of their total income tax expense. Why don$$t companies simply report their current tax bill as their income tax expense?

Distinguish between temporary differences and permanent differences. Provide an example of each.

Distinguish between intraperiod tax allocation and interperiod tax allocation $($deferred tax accounting$).$ Provide an example of each.