The 2006 Form 10-K for Wal-Mart is included in Appendix A. Locate that Form 10-K and consider the following questions:

Find Wal-Mart's financial statement note on "Income taxes."

a. Using the current tax information and the information given on income before income taxes, compute Wal-Mart's 2005 effective tax rate for both U.S. and international income. The effective tax rate is computed by dividing current taxes by income before income taxes.

b. As of January 31, 2006, Wal-Mart had $4,097 million in deferred income tax liabilities. What was the source of most of this deferred tax liability?