Access the 2018 Annual Report for Facebook, Inc., and answer the following questions. a. Using information from

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Access the 2018 Annual Report for Facebook, Inc., and answer the following questions.

a. Using information from the company’s Income Statement and Income Taxes footnote, what was the company’s effective tax rate for 2018? Show how the rate is calculated.

b. Using information from the Statement of Cash Flows, calculate the company’s cash tax rate.

c. What does the company’s Income Taxes note tell you about where the company earns its international income? Why does earning income in these countries cause the effective tax rate to decrease?

d. What item creates the company’s largest deferred tax asset? Explain why this item creates a deductible temporary difference.

e. What item creates the company’s largest deferred tax liability? Explain why this item creates a taxable temporary difference.

f. How does the company classify its income taxes payable related to unrecognized tax benefits on the balance sheet?

g. How does the company treat interest and penalties related to its unrecognized tax benefits?

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Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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