Question

All of the following are procedures for the computation of deferred income taxes except to?

1) identify the types and amounts of existing temporary differences.
2) measure the total deferred tax liability for taxable temporary differences.
3) measure the total deferred tax asset for deductible temporary differences and operating loss carrybacks.
4) All of these are procedures in computing deferred income taxes.

Answer 1

The correct answer is option 4) All of these are procedures in computing deferred income taxes.

Step-by-step explanation:

The correct answer is option 4) All of these are procedures in computing deferred income taxes.

When calculating deferred income taxes, all of the procedures mentioned - identifying existing temporary differences, measuring deferred tax liabilities for taxable temporary differences, and measuring deferred tax assets for deductible temporary differences and operating loss carrybacks - are essential steps.

Option 4) states that all of these procedures are involved in computing deferred income taxes, making it the correct answer.