Chapter 17 Question 79

Access the 2018 Form 10-K for Facebook, Inc., and answer the following questions.
A) Using information from the companys Income Statement and Income Taxes footnote, what was the companys effective tax rate for 2018? Show how the rate is calculated.
B)Using information from the Statement of Cash Flows, calculate the companys cash tax rate.
C)What does the companys Income Taxes note tell you about where the company earns its international income? Why does earning income in these countries cause the effective tax rate to decrease?
D)What item creates the companys largest deferred tax asset? Explain why this item creates a deductible temporary difference.
E)What item creates the companys largest deferred tax liability? Explain why this item creates a taxable temporary difference.
F)How does the company classify its income taxes payable related to its unrecognized tax benefits on the balance sheet?
G)How does the company treat interest and penalties related to its unrecognized tax benefits?