INCOME TAXES IN ANNUAL REPORTS. Income taxes affect the financial statements and related footnotes in many ways.

REQUIRED:

1. To demonstrate this fact, secure a recent annual report for a company of your choice.

(Many libraries maintain files of annual reports, and some subscribe to services that provide annual reports electronically or on microfilm. In addition, most large companies whose stock is widely traded will send a copy of their most recent annual report upon request. )

2. Examine the financial statements and footnotes of your annual report. Prepare a list of the financial statement items and footnotes that mention matters related to income taxes.