1. When dealing with deferred taxes, which of the following does not need to be disclosed in a companys financial statements?

The nature and amount of each type of operating loss and tax credit carryforward.

The types and amount of existing temporary differences.

The types and amounts of existing permanent differences.

a. I only

b. I, II, and III

c. I and II only

d. III only

PART 2 Simulation, 20 points

The below describe circumstances resulting in differences between financial statement income and taxable income.

Indicate the classification of each item: is it (A) a temporary difference resulting in a deferred tax asset, (B) a temporary difference resulting in a deferred tax liability, or (C) a permanent liability? An answer may be used once, more than once, or not at all.

Circumstance	Classification
For plant assets, the depreciation expense deducted for tax purposes is in excess of the depreciation expense used for financial reporting purposes.
A landlord collects some rents in advance. Rents received are taxable in the period in which they are received.
Interest is received on an investment in tax-exempt municipal obligations.
Costs of guarantees and warranties are estimated and accrued for financial reporting purposes.