Which of the following items are not included in the income tax note for a publicly traded company ?
Question 19
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 ?
Question 20
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 21
Nocera , Inc . earns book net income before tax of $ 600,000 in 2010 . Nocera acquires a depreciable asset in 2010 and first year tax depreciation exceeds book depreciation by $ 120,000 . Nocera has no other temporary or permanent differences . Assuming the U . S . tax rate is 35 %, what is Nocera ' s total income tax expense reported on its financial statements for 2010 ?
Question 22 Which of the following represent temporary book-tax differences ? Question 23