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Tiger corporation uses an accelerated depreciation method to determine its taxable income, but it used straight-line depreciation for financial accounting. What sort of difference will

  1. Tiger corporation uses an accelerated depreciation method to determine its taxable income, but it used straight-line depreciation for financial accounting. What sort of difference will this create between US GAAP and TAX accounting, and will this difference result in a deferred tax asset (DTA) or deferred tax liability (DTL)?
    1. Not enough information
    2. Future taxable amount which will result in a deferred tax liability (DTL)
    3. This would result in a GAAP to TAX difference that would NOT reverse in future years
    4. Future deductible amount which will result in a Deferred Tax Liability (DTL)
    5. Future deductible amount which will result in a Deferred Tax Asset (DTA)
    6. Future taxable amount which will result in a Deferred Tax Asset (DTA)

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