net income are included in Paint ' s income statement for current year financial reporting purposes ? Question 21 Hot , Inc .' s primary competitor is Cold , Inc . When comparing relative deferred tax asset and liability accounts with Cold , which of the following should Hot do ? Question 22 Music , Inc ., a domestic corporation , owns 100 % of Vinyl , Ltd ., a foreign corporation and Digital , Inc ., a domestic corporation . Music also owns 12 % of Record , Inc ., a domestic corporation . Music receives no distributions from any of these corporations . Which of these entities ' net income are included in Music ' s income statement for current year financial reporting purposes ? Question 23 Which of the following items are not included in the income tax note for a publicly traded company ? Question 24 Which of the following represent temporary book-tax differences ? Question 25 North , Inc ., earns book net income before tax of $ 500,000 in 2010 . In computing its book income , North deducts $ 50,000 more in warranty expense for book purposes than allowed for tax purposes . North has no other temporary or permanent differences . Assuming the U . S . tax rate is 35 % and no valuation allowance is required , what is North ' s deferred income tax asset reported on its financial statements for 2010 ? ACC 499 Final Exam Part 2 ( Set 2 ) Final Part 2 ACC 499 Capstone Question 1 The AICPA Principles of Professional Conduct include which of the following ? Question 2 Which one of the following is an example of a conflict of interest for a CPA ? Question 3