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15. Which of the following statements is correct? a. All current deferred tax liabilities and assets...

15. Which of the following statements is correct?
a. All current deferred tax liabilities and assets shall be offset and presented as a single amount on the balance sheet.
b. Deferred tax assets related to carryforwards shall be classified as current or noncurrent on the balance sheet based on their expected date of reversal.
c. All current and noncurrent deferred taxes shall be offset and presented as a single amount on the balance sheet.
d. Deferred tax liabilities and assets shall be classified as current or noncurrent on the balance sheet based on the classification of the asset or liability giving rise to the deferred tax item.

16. A deferred tax liability arising from the use of an accelerated method of depreciation for tax purposes and the straight-line method for financial reporting purposes would be classified on the balance sheet as
a. a current liability.
b. a noncurrent liability.
c. a current liability for the portion of the temporary difference reversing within a year and a noncurrent liability for the remainder.
d. an offset to the accumulated depreciation reported on the balance sheet.

17. Which of the following does NOT help explain why income tax expense is different from the product of pretax income times the current tax rate?
a. Permanent differences
b. Temporary differences
c. The fact that future and current tax rates are different
d. A change in the valuation allowance account for the deferred tax asset.

18. Which of the following is an example of a temporary difference that would result in a deferred tax liability?
a. Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes
b. Rent revenue collected in advance when included in taxable income before it is included in pretax accounting income
c. Use of a shorter depreciation period for accounting purposes than is used for income tax purposes
d. Investment losses recognized earlier for accounting purposes than for tax purposes

19. Which of the following is NOT a source of support for the realization of a deferred tax asset?
a. Future taxable temporary differences
b. Future deductible temporary differences
c. Past taxable income within the carryback period
d. Future taxable income

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