which of the following situations will not cause a deferred income tax amount to be recorded ?

a - expense that is recognized in 20A for income tax purposes and in 20 B for financial statement purposes
b - expense that is recognized in 20A for financial statement purposes but will never be deductible for income tax purposes
c - a revenue recognized in 20A for income tax purposes and in 20 B for financial statement purposes
d - all of the above would cause a deferred income tax amount
e - none of the above would cause a deferred income tax amount

b

To determine which situation will not cause a deferred income tax amount to be recorded, let's break down each option:

a - Expense recognized in 20A for income tax purposes and in 20B for financial statement purposes: This situation will typically result in deferred income tax because there will be a timing difference between the recognition of the expense for income tax purposes and financial statement purposes.

b - Expense recognized in 20A for financial statement purposes but will never be deductible for income tax purposes: This situation will not cause a deferred income tax amount to be recorded. If the expense is not deductible for income tax purposes, there will be no timing difference between income tax and financial statement recognition. Therefore, no deferred income tax will be recorded.

c - Revenue recognized in 20A for income tax purposes and in 20B for financial statement purposes: Similar to option a, this situation will usually result in deferred income tax due to timing differences between income tax and financial statement recognition of revenue.

d - All of the above would cause a deferred income tax amount: This statement is incorrect. As option b does not cause deferred income tax, it cannot be grouped with options a and c, both of which cause deferred income tax. Therefore, not all of the above options would cause a deferred income tax amount.

e - None of the above would cause a deferred income tax amount: This statement is also incorrect. As mentioned above, options a and c would typically cause deferred income tax. Option b, however, would not cause deferred income tax. Therefore, at least one of the above options would cause a deferred income tax amount.

In conclusion, the situation that will not cause a deferred income tax amount to be recorded is option b - an expense recognized in 20A for financial statement purposes but will never be deductible for income tax purposes.