Reference no: EM132976683

Problem 1: The "tax expense" or the "provision for taxes" shown on the income statement equals

a. Current tax expense

b. Taxes paid

c. Current tax expense + Deferred tax expense

d. Current tax expense + Deferred tax expense + Effect of permanent differences

Problem 2: According to the language used by FASB, a taxable temporary difference makes

a. Current taxable income higher than current book income

b. Current taxable income less than current book income

c. Future taxable income higher than future book income

d. Future taxable income lower than future book income