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Deferred tax expense

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Deferred tax expense
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid.


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The EITF also reached a consensus that the deferred tax expense or benefit should be calculated as the difference between (1) deferred tax assets and liabilities reported at the end of the current year, determined in accordance with the above paragraph, and (2) deferred tax assets and liabilities reported at the end of the prior year, recalculated in units of current general purchasing power at the end of the current year.
The income tax expense or benefit for the period is derived from the total tax currently payable or refundable and the deferred tax expense or benefit.
Included in the after-tax loss is a deferred tax expense for $1,350,000.
 
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