CFA Level 1 Practice Question – 47 Rahul made following - TopicsExpress

CFA Level 1 Practice Question – 47 Rahul made following statement with respect to Income taxes, he is correct in making statement I. When Carrying Value of an asset is greater than Tax base then deferred tax asset would be created. II. A temporary ir-reversible deferred tax liability can arise if the company is growing and is likely to increase the capital expenditure for the foreseeable future III. In case an analyst feels a deferred tax asset is irreversible the adjustments that he makes for the purpose of analysis will lead to increase debt to equity ratio a) All three b) I and II only c) II and III only

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