I recorded this video to discuss how differences in depreciation expense for GAAP vs. the depreciation deduction on the tax return can lead to deferred tax liabilities. These differences arise from different methods being used to determine the GAAP depreciation expense (generally straight-line) vs. the tax depreciation schedules (MACRS, which are based on double-declining balance, DDB).
You can access the example on the "DTL Example" worksheet which was blank when I started, and the solution on the "DTL Solution" worksheet of the following workbook:
At the end of the video, I discuss how different facts could lead to a deferred tax asset. In particular, if the depreciation method chosen for GAAP is more aggressive than tax, we have a DTA instead of a DTL. See the DTA Alt Solution worksheet for the complete solution to this problem, which I added at the end of the video before I prepared the complete solution. In the video, I go through a portion of this alternative scenario.