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Explain how the tax effect of a temporary difference produces a deferred tax liability; and...

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Accounting

Explain how the tax effect of a temporary difference produces a deferred tax liability; and a deferred tax asset. In addition, what is a permanent difference, what creates them and what effect do they have on income tax payable, income tax expense and deferred income taxes. What is your opinion of deferred tax accounting and why you think it is a useful GAAP? Or do you?

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