1. Briefly describe the seven-step process by which a company computes its income tax provision. Which step is the most difficult in your view? Explain.
2. At what point should a C-corporation assess the need of establishing a valuation allowance? What are the considerations for establishing a valuation allowance?
3. Briefly describe the two-step process a company must undertake when it evaluates whether it can record the tax benefit from an uncertain tax position under ASC 740-10 (FIN 48). What step would you say it more subjective?