Please help me with these questions so I can learn for the future reference.
Thanks Question 16 3 pts Bungles, Inc. reports net income before taxes on its income statement for 2016 (its first year of operations) in the amount of $1.300,000. Included in income is $100.000 in interest income from municipal bonds issued by the state of Ohio. Tax depreciation for the year is $250,000, while depreciation according to GAAP is $150,000. The applicable income tax rate for all relevant years is 40% What is Bungles' effective income tax rate for 2016 (to 4 decimal points, e.g. 12.98%)? 40.00% 43.07% 33.84% 36.9296 Question 17 3 pts For its first year of operations, Cable Corp.recorded a $500.000 expense in its tax return that will not be recorded in its accounting records until next year. There were no other differences between its taxable and financial statement income. Cable's effective tax rate for the current year is 40%, but a 35% rate has already been passed into law for next year. In its year-end balance sheet, what amount should Cable report as a deferred tax asset (liability)? $200,000 liability $175,000 asset $200,000 asset $175,000 liability