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6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the following temporary differences, which one ordinarily creates a deferred tax asset? a. Installment sale for tax reporting. b. Prepaid expenses C. Fines paid for violation of law. d. Estimated warranty expense. 8) Lincoln Inc. had $180 million in taxable income for the current year. Lincoln also had an increase in deferred tax assets of $3 million and a decrease in deferred tax liabilities of $6 million. The company is subject to a tax rate of 40%. The total income tax expense for the year was: a. $75 million b. $72 million C. $69 million d. $63 million 9) Hicks Corp. recognized $40,000 as revenues in its 2018 financial statements, of which $30,000 will not be taxable until receiving cash in 2019. Hick's enacted tax rate is 30% for 2018 and 40% for 2019. What amount should Hicks report in its 2018 balance sheet for deferred income tax liability/asset? a. Deferred tax asset of $4,000 b. Deferred tax asset of $3,000 C. Deferred tax liability of $12,000 d. Deferred tax liability of $9,000 10) Which of the following describes defined benefit pension plans? a. The plans are simple and easy to construct b. The investment risks are borne by the employer C. The investment risk is borne by the employee d. Retirement benefits depend on the individual's account balance

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