Which of the following transactions would create a deferred tax liability on foreign income? Multiple Choice...

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Which of the following transactions would create a deferred tax liability on foreign income? Multiple Choice A U.S. company s

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Option “A US Company sells its product in a foreign country” this is the correct option as it creates a temporary difference and the tax liability will arise in the year in which amount is received from customer.

Option “A US Company earns income in different country and pays the foreign government an income tax less than the US corporate tax rate is an incorrect option as this creates Deferred Tax asset and not Deferred tax liability.

Option “A US Company earns income in a foreign country that is does not expect to repatriate back to the US”, is an incorrect option because it does not create a temporary difference.

Option “A foreign-based company sells its products to customers in the US” is an incorrect option as it does not create timing difference

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Which of the following transactions would create a deferred tax liability on foreign income? Multiple Choice...

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