Question 1 The statutory tax rate is reported in footnotes, but it is not to be used for the tax allocation. Question 2 To make judgments about a firm's performance, the analyst needs benchmarks. Benchmarks are established by reference to other firms (usually in the same industry) or to the same firm's past history. Comparison to other firms is called cross-sectional analysis. Question 3 If the holding is less than 20 percent of the shares of another corporation, they are recorded as equity investments under the equity method. Question 4 warranties and guarantees are also recognized as revenue . Question 5 Leases which are low value and less than one year are usually capitalized and placed on the balance sheet are called capital leases