Deferred Tax Assets and Deferred Tax Liabilities

For a deferred tax liability to be created, it must _most likely_ be:

Correct. Deferred tax liabilities as well as deferred tax assets are only created when there is a temporary difference between the tax base and the carrying amount for assets. These differences are expected to resolve in the future, making them temporary.

Incorrect. Permanent differences are included into the accounting as differences between taxes and financial reporting. No deferred tax liability nor asset would be created.

Incorrect. There is no set minimum that must occur in order to have a deferred tax liability. There is a different criteria for such a liability to be created.

a temporary difference.

a permanent difference.

greater than the minimum set by regulation.