Telecommunications
Deferred Tax — Spectrum License Timing Difference
Recording the deferred tax liability from the difference between accounting amortization and tax depreciation on the spectrum license.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Tax Expense (Spectrum) | Expense (+) | 2,000,000.00 | - |
| Deferred Tax Liability (Spectrum) | Liability (+) | - | 2,000,000.00 |
💡 Accountant's Note
Tax authorities may allow accelerated deduction of spectrum costs while accounting amortizes them over the license period. The temporary difference creates a deferred tax liability — the tax benefit taken early must be 'given back' later.
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