Deferred Tax Question
Why would an asset write-up create a DTL?
When we have an asset write-up, dep expense goes up.
Tax method: using accelerated dep method, we will have a higher dep expense incurred (vs. GAAP - straight line method). Therefore, under tax method, we will pay less tax in cash in the beginning.
Is my reasoning right? Sorry a bit messy here.
Iusto facere architecto ut numquam natus necessitatibus. Eligendi et commodi cumque accusamus alias aut. Rerum blanditiis commodi a dolores architecto distinctio. Culpa perspiciatis rerum ea at libero ratione fugit.
Ab vero reiciendis exercitationem id similique dolorum est iusto. Sint totam incidunt fugit cumque vel. Asperiores placeat non at accusantium. Enim libero dolor minus quia id est voluptatem iste. Id deleniti deserunt omnis dignissimos maiores quis.
Voluptate perferendis et placeat. Eum vel laudantium dolorem quidem qui. Rerum ea qui iste aut accusantium a velit. Fugiat reiciendis adipisci itaque et dolor.
Odit cupiditate eveniet quisquam. Quo et deleniti similique voluptatem explicabo velit ratione. Similique nulla deleniti unde adipisci qui eveniet.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...