When Tax Rates Are Changed Subsequent to the Creation of a Deferred

Multiple Choice

When tax rates are changed subsequent to the creation of a deferred tax asset or liability, GAAP requires that:

A) All deferred tax accounts be adjusted to reflect the new tax rates.
B) The beginning deferred tax accounts are left unchanged.
C) Only the current deferred tax accounts are adjusted to reflect the new tax rates.
D) Only the noncurrent deferred tax accounts are adjusted to reflect the new tax rates.