Question

All of the following are procedures for the computation of deferred income taxes except to

a. identify the types and amounts of existing temporary differences.
b. measure the total deferred tax liability for taxable temporary differences.
c. measure the total deferred tax asset for deductible temporary differences and operating loss carrybacks.
d. All of these are procedures in computing deferred income taxes.

Answer 1

All the listed options (a, b, c) are correct procedures for computing deferred income taxes, making option 'd' the correct answer as it states that all are procedures in the computation.

Step-by-step explanation:

The question pertains to the procedures involved in the computation of deferred income taxes, which is a concept in accounting and business that deals with the differences between the tax expense recognized in the income statement and the tax payable to the tax authorities due to timing differences. The correct procedures include: (a) identifying the types and amounts of existing temporary differences, (b) measuring the total deferred tax liability for taxable temporary differences, and (c) measuring the total deferred tax asset for deductible temporary differences and operating loss carrybacks. Hence, the answer to the student's question is 'd. All of these are procedures in computing deferred income taxes.'