1. Income tax expense is equal to

A. Taxable income multiplied by the applicable tax rate(s).

B. Pretax income from continuing operations multiplied by the applicable tax rate(s).

C. The sum of current tax expense and deferred tax expense.

D. The difference between current tax expense and deferred tax expense.

2. A current tax asset must be recognized for

A. The estimated taxes refundable on the current years tax return.

B. The estimated future tax effects of an operating loss carryforward.

C. The estimated future tax effects of a deductible temporary difference.

D. The estimated future tax effects of a tax credit carryforward.