Hi Professor and Class, I agree with Deanna and wanted to expand.
False. “It is a common misconception that all book-tax differences affect effective tax rate (ETR). Permanent differences do affect the firm’s ETR, though the effect may not always be beneficial”[ CITATION All19 \l 1033 ].
“As long as tax rates are constant over time, temporary differences do not affect ETR. Therefore, though accelerating deductions and delaying income is good tax planning strategies in terms of the time value ofmoney and lowering the current-year tax liability, companies that care about the ETR disclosure will not find sufficient value in this approach”[ CITATION All19 \l 1033 ].
“Similarly, though having to wait to claim a loss is not ideal from a tax perspective, it will not affect the firm’s ETR. It is therefore important for https://www.solvedcollegepapers.com/product/acct-311-acct311-acct-311-etr
https://www.solvedcollegepapers.com/product/acct-311-acct311-acct-311-ch-2
