Which of the following items is 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 effective tax rate reconciliation in the income tax footnote typically includes the hypothetical tax on book income at the statutory rate, total tax expense, and the tax effects of permanent differences, but not the tax effect of temporary differences, which are part of deferred tax calculations.

Which of the Following Items Is Not Included in the GAAP