For some corporations, a reconciliation of book to tax is required to be reported on form M1. What are the four major types of differences between Book and Tax (not including tax per books and excess losses)?

Match the four types of differences with a relevant examples.

Type of Difference	Example of a Difference

1. __	Income for book but not for tax
2. __	Deduction for book but not for tax.
3. __	Income for tax, but not for the books.
4. __	Deductions for the tax return but not for the books.

A.	Municipal bond interest earned
B.	Royalty income
C.	Accelerated depreciation.
D.	Travel and entertainment.

Match the following statements to the appropriate accounting term according to FASB 740 accounting for income taxes.

1.	Amount of income taxes payable this year
2.	Amount of income tax to be refunded this year
3.	Cumulative taxable income is less than cumulative pretax book income
4.	Cumulative taxable income exceeds cumulative pretax book income

A.	Current tax asset
B.	Deferred tax liability
C.	Current tax liability
D.	Deferred tax asset