EOC - Income Taxes Pg. 504 Q.3

CFA Level I FRA
#1

Income tax expense reported on a company’s income statement equals taxes payable, plus the net increase in:

a/ DTA and DTL

b/ DTA, less the net increase in DTL

c/ DTL, less the net increase in DTA

Am I wrong in thinking the answer could be all three?

#2

nope they want you to concentrate on the signs …

taxes payable + delta DTL - Delta DTA?

so c)?

#3

Yes, it could be all three . . . if the changes in DTAs and DTLs were zero.

If not, go with c. It’s always correct.