A Deferred Income Tax Liability

Multiple Choice

A deferred income tax liability

A) arises because of differences between U.S.income tax rules and foreign income tax rules.
B) can arise because of "permanent" and "temporary" differences.
C) arise because managers wish to maximize taxable income.
D) can arise when a firm uses special accelerated depreciation for tax purposes while using straight-line depreciation for financial reporting.
E) occurs when the company has a NOL (net operating loss) .