On January 1, 2016, Piston, Inc

Multiple Choice

On January 1, 2016, Piston, Inc.acquired Spur Corp.While recording the acquisition, Piston established a deferred tax liability.It is most likely that this account was created because

A) ​The transaction was a tax-free exchange to Piston.
B) ​Piston had not paid all of the income taxes due the government when acquiring Spur.
C) ​The transaction was a tax-free exchange to Spur.
D) ​Spur had not paid all of the income taxes due the government prior to the acquisition by Piston.