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.
Minus laboriosam est quo vel dicta quibusdam et. Cumque et id quis consequatur. Recusandae sit hic tenetur quia officia quae.
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...