leadcfa

When I saw this question, one thing hit me: The difference between 2005 year end incomes is more than 2004 year end incomes. My thought was: do they mean that the gap has increased in 2005 to $520 (from 300 a year before).. the way you say the difference in the CA and TB increases each year and hence we can use just the last year's difference to get total DTL. I think that is what they had in mind though using 'accounting purpose income' and 'tax purpose income' is certainly misleading since it seems that we have picked these values from the income statement and tax returns of the 2 years. My answer would also be 205 here but that is the explanation I could think of for their answer.