The 2011 financial statements for The Walt Disney Company can be found on the Internet.

Using the financial statements and information contained in the notes, determine how much income tax expense Disney reported for the fiscal year ended October 1, 2011.

Referring to the note on income taxes, how much of the tax expense relates to current items, and how much relates to deferred items?

Disney notes that its effective income tax rate for 2011 was . Using information from the income statement, determine how that number was computed.

Note that Disney has a valuation allowance of . In the journal entry establishing this allowance account, what would have been the debit and the credit?

Why was Disneys effective income tax rate lower than the U.S. federal income tax rate of in 2011? [Hint: Look at Note 10 (Income Taxes).]

Explain why the effective income tax rate differs from company to company.

Do differences in effective tax rates reflect the impact of temporary book-tax differences or permanent book-tax differences? Explain.