Access the 2018 Form 10-K for Facebook, Inc., and answer the following questions. (Round your final answer to 1 decimal place.) Required:

1. Using information from the companys Income Statement and Income Taxes footnote, what was the companys effective tax rate for 2018?
2. Using information from the Statement of Cash Flows, calculate the companys cash tax rate.

c. What does the companys Income Taxes note tell you about where the company earns its international income?

multiple choice 1

• There is no mention about where Facebook earns its foreign income in the Income Taxes footnote.

• United States

• England

• Ireland

d. What item creates the companys largest deferred tax asset?

multiple choice 2

• Employee related obligations

• Stock-based compensation expense

• International R&D capitalized for tax

• Miscellaneous items

• Net operating loss carryforward

e. What item creates the companys largest deferred tax liability?

multiple choice 3

• Depreciation and amortization

• Identified intangibles

• International R&D capitalized for tax.

• Other

• Foreign earnings

f. How does the company classify its income taxes payable related to its unrecognized tax benefits on the balance sheet?

multiple choice 4

• Does not classify the benefit

• As a part of cash flow

• Long term liabilities

• Short term liabilities

• Other liabilities

g. How does the company treat interest and penalties related to its unrecognized tax benefits?

multiple choice 5

• Treated as benefits

• Treated as interest paid

• Treated as income tax provision.