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Basic Question 0 of 18
Bay Tree Golf Corp. recorded a deferred income tax liability in 2015. The amount resulted from Bay Tree's book income exceeding its taxable income. The liability is expected to reverse in 2020, when taxes will become currently payable. At the end of 2015, which one of the following describes the valuation of deferred income taxes payable?
B. Amortized cost
C. Current market value
A. Historic cost
B. Amortized cost
C. Current market value
User Contributed Comments 1
User | Comment |
---|---|
achu | Historic cost is essentially nominal (undiscounted) cost |

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Learning Outcome Statements
explain the Modigliani-Miller propositions regarding capital structure
CFA® 2025 Level I Curriculum, Volume 2, Module 6.