79. Access the 2012 Annual Report for Google and answer the following questions. You can access the annual report at .google.com/">http://www.google.com. a. Using information from the company's Income Statement and Income Taxes footnote, what was the company's effective tax rate for 2012? Show how the rate is calculated. b. Using information from the Statement of Cash Flows, calculate the company's cash tax rate. c. What does the company's Income Taxes note tell you about where the company earns its international income? Why does earning income in these countries cause the effective tax rate to decrease? d. What item creates the company's largest deferred tax asset? Explain why this item creates a deductible temporary difference. " e. What item creates the company's largest deferred tax liability? Explain why this item creates a taxable temporary difference. . f. How does the company classify its unrecognized tax benefits on the balance sheet? g. How does the company treat interest and penalties related to its unrecognized tax benefits?

80. Spartan Builders Corporation is a builder of high end housing with locations in major metropolitan areas throughout the Midwest. At June 30, 2014, the company has deferred tax assets totaling $10 million and deferred tax liabilities of $5 million, all of which relate to U.S. temporary differences. Reversing taxable temporary differences and taxable income in the carryback period can be used to support approximately $2 million of the $10 million gross deferred tax asset. The remaining $8 million of gross deferred tax assets will have to come from future taxable income. The company has historically been profitable. However, significant loses were incurred in fiscal years 2012 and 2013. These two years reflect a cumulative loss of 10 million, with losses of $3 million expected in 2014. $7 million of the losses was due to a write-down of inventory. Beginning in fiscal 2015, management decided to get out of the metropolitan Chicago market, which had become over-saturated with new houses. Evaluate the company's need to record a valuation allowance for the $10 million of gross deferred tax assets . What positive and negative evidence would you weigh?