Income Taxes

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Question

Why is rate-change remeasurement recorded when enacted, not when effective?

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Answer

ASC 740 uses enacted rates for measurement.

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Question

How is a deferred tax asset or liability measured?

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Answer

Temporary difference times the enacted future tax rate.

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Question

What is the default deferred tax treatment of equity-method undistributed earnings?

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Answer

A deferred tax liability.

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Question

If an uncertain tax position fails recognition, what is recorded?

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Answer

A liability for unrecognized tax benefits.

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