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← Deferred taxes: DTAs and DTLs
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Fundamentally, why do deferred taxes exist at all?
A
A company keeps two sets of books, one for shareholders and one for the IRS, and they don't agree in a given year
B
Tax rates change every year and the balance sheet has to catch up
C
Companies want to smooth reported earnings across good and bad years
D
The government requires a reserve for taxes that might be audited later
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