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Question 1 (10 marks) a. Identify three examples of differences with no deferred tax consequences (3 marks) b. Suppose a tax reform bill is enacted

Question 1 (10 marks)

a. Identify three examples of differences with no deferred tax consequences (3 marks)

b. Suppose a tax reform bill is enacted that causes the corporate tax rate to change from 34% to 36%. How would this affect an existing deferred tax liability? How would the change be reflected in income? (4 marks)

c. Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts with example (3 marks)

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