A. Which of the following statements is correct?

A. Corporate earnings would be more volatile if deferred income taxes were not part of the amount reported for income tax expense.

B. A stockholder should want the firm in which s/he has common stock to have a large deferred income tax liability.

A and B.

Neither A nor B.

B. Income tax expense for the year equals the

A. amount paid for estimated income taxes during the year plus

B. the change in the deferred tax liability for the year.

A and B.

Neither A nor B.

C. The amount of a firms deferred tax liability at the end of the year is equal to

A. future taxable amounts multiplied times 35%.

B. the excess of future taxable amounts over future deductible amounts multiplied times 35%.

C. Income tax expense minus the statutry income tax liability.

A and C.

D. Which of the following statements is correct?

A. Uncertain tax positions that are more likely than not to be sustained meet the recognition threshold established by the FASB.

B. An allowance is established for a deferred tax asset only when it is probable that some or all of the deferred tax asset will not be realized.

A and B.

Neither A nor B.