QUESTION 2

1. The following statements are incorrect, except for:

	a.	When the carrying amount of an asset is larger than its tax base, a deferred tax asset should be recognized.
	b.	When the carrying amount of a liability is higher than its tax base, a deferred tax liability should be recognized.
	c.	A valuation allowance of deferred tax asset is a reduction that is derived from the probability of the realization of the asset.