QUESTION 1A)

For classification purposes, a valuation allowance:

A) Is contra to the deferred tax asset and classified as noncurrent.

B) Is allocated proportionately between deferred tax assets and deferred tax liabilities.

C) Is allocated proportionately between the current and noncurrent portions of the deferred tax asset.

D) Is added to the deferred tax asset and classified as current.

* The answer is not C

QUESTION 8B)

If the lessee and lessor use different interest rates to account for a finance/sales-type lease, then:

		A) GAAP has been violated by at least one party.
		B) The lessee is unaware of the lessor's implicit rate.
		C) Total expenses for the lessee will equal the lessor's total revenues.
		D) The lessee will report more net income for the year.

* The answer is not C.