Because Gene Co. uses different methods to depreciate buildings for financial statement and income tax purposes, Gene has temporary differences that will reverse during the next year and reduce taxable income. Deferred income taxes that are based on these temporary differences should be classified in Genes balance sheet as a:

a. Noncurrent liability. b. Current liability. c. Noncurrent asset. d. Current asset.

Kasar Co. has net income, before taxes, of $335,000, including $35,000 in interest revenue from municipal bonds and $12,000 paid for officers life insurance premiums where the company is the beneficiary. The effective tax rate for the current year is 29.5%. What is Kasars actual tax rate for the current year?

a. 29.5% b. 30.0% c. 31.0% d. 31.7%