Final answer:
False. When Congress changes the corporate tax rates, both the current year book-tax temporary differences and the future temporary differences are measured using the new rates.
Step-by-step explanation:
False. When Congress changes the corporate tax rates, the new rates are applied to both the current year book-tax temporary differences and the future temporary differences. Book-tax temporary differences are the differences between the amount of income reported on a corporation's financial statements and the amount of income reported on its tax return. These temporary differences result in deferred tax assets or liabilities. So, when the tax rates change, all the temporary differences, including both the current year and future differences, are measured using the new rates.