Chapter 19, Problem 1UJ

To determine

Pretax financial income: Income that is computed based on the records and documents presented by the individual, firm, or an entity is termed pretax financial income. Generally, the pretax financial income is the income which is eligible for computing or determining the net tax liability of the individual, firm, or an entity.

Taxable income: Income that is computed after deducting all allowable or permissible deductions from the pretax financial income is called taxable income. In other words, the income which is eligible for computing the tax liability is taxable income.

(a)

To determine the income tax-related information from the balance sheet, financial report, and cash flows.

To determine

(b)

To determine the effective tax rates for the years 2012, 2013, and 2014.

To determine

(c)

To determine the deferred tax and current tax expense.

To determine

(d)

To determine the deferred tax expenses from the financial reports.