Case 15341: These deferred taxes are actually incurred during the period and therefore should be included in total income tax expense to satisfy the matching principle. d. Deferred tax assets represent a future positive cash inflow because of overpaid taxes in the present, while a deferred tax liability represents a tax payment that the 52 company is obligated to make in the future. An example of a deferred tax asset is the carry-over of losses; an example of a deferred tax liability is depreciation differences for taxable income and book income. e. The deferred income tax valuation allowance is a provision relating to the deferred tax asset account to ensure that the deferred tax asset is not overstated. For Zagg, it is listed in Note 8 in table 3. An allowance should be recorded when there is potential that the deferred tax asset might be overstated. f. Consider the information disclosed in Note 8 - Income Taxes to answer the following questions: i. ii. iii. ETR = Tax expense / Pre-tax Income ETR = $9,393 / 23,898 = 39.31% The permanent differences between book income and taxable income make up the 4.31% difference between the effective tax rate and the statutory rate. iv. The current portion of deferred income tax assets is listed under current assets at $6,912, while the non-current portion is listed as an asset on the balance sheet at $6,596. An example of this is municipal bond interest income, which is recognized as part of book income but not taxable income. ii. Temporary tax difference - this is the difference between the carrying value of an asset or liability on the company's balance sheet and the asset or liability's taxable base. There are two types of temporary tax differences: deductible or taxable. An example of a temporary difference is depreciation, which is accounted for differently on book income versus taxable income. iii. Statutory tax rate - this is the rate imposed by the state or country that is responsible for taxing the entities. iv. Effective tax rate - this is the average tax rate that the entity will pay on their pre tax income. Deferred Income Taxes 51 a. Book income is the same as financial income, which is revenues minus expenses. Zagg's book income for 2012 is $14,505. This differs from taxable income due to temporary taxable differences, permanent taxable differences, and loss carryforwards and carrybacks. b. define the following terms: i. Permanent tax difference - this is a difference between book income and taxable income that will never be eliminated. c.

Question 31

In the case of antituberculous treatment toxicity, how high should the

serum glutamic pyruvate transaminase (SGPT) rise before we should

stop treatment?

Question 32

After starting antituberculous treatment, when is the fever expected to

subside and the erythrocyte sedimentation rate (ESR) to return to normal?

Question 33

What are the indications of steroids in the treatment of tuberculosis?

Question 34

I am a final-year medical student in India, where tuberculosis in all forms

is one of the most common diseases with which we deal. I read that you

feel there is no indication for steroids in tuberculosis. Is it not reasonable

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to give steroids with antitubercular therapy (ATT) in a patient with

tuberculous pericarditis, meningitis, peritonitis and ocular manifestations

due to tuberculosis, in order to reduce the damage caused by inflammation

and fibrosis? If not, what suitable alternatives, other than steroids, would

you recommend to reduce damage from postinflammatory fibrosis?

Question 35

What dosage of steroids and duration of treatment should be given to

patients with idiopathic pulmonary fibrosis? What are the new drugs,

their recommended dosage and duration of treatment?

Question 36

What is the poor prognostic factor in cryptogenic fibrosis: fibrosis or

concomitant connective tissue disorder?

Question 37

Are wheezes present in extrinsic allergic alveolitis?

Question 38

Is the measurement of chest expansion with a tape a useful physical

examination to indicate the severity of emphysema?

Question 39

In asbestos-related pleural disease (pleural plaques and mesothelioma),

how does asbestos fibres get to the pleural space?

Question 40

How do you differentiate clinically between thickened pleura and pleural

effusion?

Question 41

What is the difference between transudate and exudate?

Question 42

I wish to ask about Meigs' syndrome. I know that it is an association of

pleural effusion, ascites and benign ovarian tumours or fibromas. Is the

effusion transudate or exudate?

Question 43

I have read that patients with cystic fibrosis should not meet each other

socially. Why is this?

Question 44

I have a young patient with bilateral hilar lymphadenopathy but no other

manifestations of sarcoidosis. How can I make a diagnosis?

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161

Question 45

We have read in your book that continuous oxygen therapy at home

reduces mortality in chronic obstructive pulmonary disease (COPD).

I am concerned that my patient might develop acute respiratory

failure.