for example: 2000, 1/1 a purchase of a new asset. for financial statement purpose, straight-line depreciation over 12 years, with no salvage value, for tax purpose, three year MACRS depreciation class with first year MACRS factor =1/3. tax rate 40% the financial statement produce pretax income, and for tax purpose, the MACRS produce taxable income, so pretax income > taxable income, so a deffered tax liability occur, is it? Thanks.
is really no one going to give him the answer?
Yes, it creates a DTL.
Yes, because you are paying “less” than what you “should” be paying