Part 1:

a. Is income tax payable always calculated the same way? Is income tax expense?

b. Journal entries related to the Allowance.

c. What is the allowance?

d. Putting together the year end adjusting entry.

e. If a new tax rate is signed into law, what is required?

f. If and when it is appropriate to recognize an allowance for DTLs.

g. If and when it is appropriate to recognize an allowance for DTAs.

h. Determining if an item creates a DTA or a DTL.

i. What the current and deferred components of income tax expense are.

j. What temporary differences are.

k. Balance sheet presentation of DTAs and DTLs.