Which of the following items are not included in the GAAP financial statement income tax footnote's effective tax rate reconciliation?
A)Hypothetical tax on book income at U.S. Federal corporate tax rate.
B)Total tax expense per the GAAP financial statements.
C)Tax effect of temporary differences.
D)Tax effect of permanent differences.

Question

Quizplus · Accepted Answer

The tax effect of temporary differences is not included in the effective tax rate reconciliation; it is part of the deferred tax calculation. The reconciliation focuses on differences between the statutory tax rate and the effective tax rate due to permanent differences and other items.

Which of the Following Items Are Not Included in the GAAP