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Analyzing and interpreting income tax disclosures

reports the following income tax footnote disclosure in its 10-k report.

A. Colgate reports $311 millino of deferred tax liabilities in 2018 relating to property." Explain how such liabilities arise?

B. Describe how a deferred tax asset can arise from pension and other retiree benefits

C. Colgate report $89 million in deferred tax assets for 2018 relating to tax loss and tax credit carryforwards. Describe how tax loss carryfowards arise and under what conditions the resulting deferred tax asset will be realized.

D. Colgate's income statement reports income tax expense of $906 million in 2018. Assume that cash paid for income tax is $837 million and that taxes payable decreased by $8 million. Use the financial statement effects template to record tax expense for 2018. (hint: show the effects of changes in deferred taxes. )

\begin{tabular}{|c|c|c|} \hline Deferred Tax Batances at December 31 (\$ millions) & 2018 & 2017 \\ \hline & \begin{tabular}{r} 8(344) \\ (311) \\ (181) \\ (75) \end{tabular} & \begin{tabular}{l} s(311) \\ (306) \\ (t19) \\ (603) \end{tabular} \\ \hline & (911) & (700) \\ \hline & \begin{tabular}{r} 354 \\ 89 \\ 180 \\ 95 \\ 164 \end{tabular} & \begin{tabular}{r} 375 \\ 48 \\ 187 \\ 90 \\ 82 \end{tabular} \\ \hline & \begin{tabular}{l} 882. \\ (54) \end{tabular} & \begin{tabular}{r} 792 \\ 98 \end{tabular} \\ \hline Not delened tax assets ................. & 828 & 783 \\ \hline Net deterted income taxes .................. & & 3(16) \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Deferred tanes included within \\ Assets \end{tabular}} \\ \hline \begin{tabular}{l} Deflened income taxes ................................ \\ Liabelites \end{tabular} & 152 & \\ \hline Deterred income taxes .... & (235) & (204) \\ \hline Net delerted income taxes .................. & 3(83) & $(16) \\ \hline \end{tabular}

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