For the year ended October 31,2018,NB Financial Group (National Bank)reported income before tax of $2,160 million and income tax expense of $274 million,for an effective tax rate of 12.7% ($274m / $2,160m).In the notes to the financial statements,NB's disclosures included the following information:
Required:
a.From NB's disclosures provided above,identify any permanent differences.
b.In which direction did the tax rate change from 2017 to 2018?
c.Refer to the line "Recovery of prior years' income taxes" in the above disclosures.What does this information imply about NB's treatment of tax losses in prior years?

Question

For the year ended October 31,2018,NB Financial Group (National Bank)reported income before tax of $2,160 million and income tax expense of $274 million,for an effective tax rate of 12.7% ($274m / $2,160m).In the notes to the financial statements,NB's disclosures included the following information:
  Required:
a.From NB's disclosures provided above,identify any permanent differences.
b.In which direction did the tax rate change from 2017 to 2018?
c.Refer to the line "Recovery of prior years' income taxes" in the above disclosures.What does this information imply about NB's treatment of tax losses in prior years?

Quizplus · Accepted Answer

The Answer of For the year ended October 31,2018,NB Financial Group (National Bank)reported income before tax of $2,160 million and income tax expense of $274 million,for an effective tax rate of 12.7% ($274m / $2,160m).In the notes to the financial statements,NB's disclosures included the following information:
  Required:
a.From NB's disclosures provided above,identify any permanent differences.
b.In which direction did the tax rate change from 2017 to 2018?
c.Refer to the line "Recovery of prior years' income taxes" in the above disclosures.What does this information imply about NB's treatment of tax losses in prior years?

For the Year Ended October 31,2018,NB Financial Group (National Bank)reported