In the first year of operations ABC company reported $8,000 of warranty expense on the tax return and $10,000 of warranty expense on the income statement. The difference will generate a 1) audit by the IRS 2) deferred tax liability 3) deferred tax asset 4) lawsuit by shareholders The 2016 Form 10-K of XYZ Company disclosed $1,000 million related to various deferred tax assets. The 2015 deferred tax assets had a balance of $1,061 million. What effect did this decrease in deferred tax assets have on XYZ's net income in 2016? 1) Decrease net income by $1,000 milion 2) 3) Decrease net income by $61 million Increase net income by $61 million 4) Increase net income by $1,000 million What are the four basic components of the pension obligation? Service cost, interest cost, actuarial gain(loss), benefits paid to retirees 2) Actual return on investment, company contributions, benefits paid to retirees 3) Service cost, interest cost, expected return on plan assets, and amortization of deferred amounts 4) Actuarial gain(loss), compa ny contributions, benefits paid to retirees During 2016, XYZ Company's actuaries increased the discount rate used to calculate pension obligation from 3.8% to 4.3%. The affect on the company's pension expense for the year and pension obligation balance at year end is: Increase pension expense, increase pension obligation 2) Increase pension expense, decrease pension obligation 3) Decrease pension expense, decrease pension obligation 4) Decrease pension expense, increase pension obligation