Obtain the 2016 annual report for Bombardier Inc. either through the company’s website or from SEDAR (www.sedar.com). 

Required: 

a. How much was income tax expense in 2016? How much was current and how much was deferred? 

b. How much was the average effective tax rate faced by the company (calculated as income tax expense divided by pre-tax income)? How does this figure compare with the statutory tax rate according to the company? 

c. How much would tax expense have been in 2016 had the statutory tax rate applied to pretax income? 

d. What was the most significant factor in explaining the difference between the effective and statutory tax rates? 

e. How much were the amounts of deferred income tax asset and deferred income tax liability on the balance sheet at the end of 2016? 

f. What was the most significant source of deferred income tax assets? 

g. How much was the valuation allowance on deferred tax assets?