In LMC's 2018 Annual Report to Shareholders, It Disclosed the Following

question 33

Essay

In LMC's 2018 annual report to shareholders, it disclosed the following information about its income taxes:

INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities for accounting purposes and the amounts used for income tax purposes.

Significant components of the Company's deferred tax liabilities and assets as of December 31 were as follows:

-Indicate why LMC lists net operating loss carryforwards as a component of deferred tax assets.

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Definitions:

Tangible Products

Physical items that can be seen, touched, and used, as opposed to services or digital goods.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or corporation, or rights to ownership as represented by an option.

Trade Balance

The difference in value between a country's imports and exports over a given period, a component of a country's balance of payments.

Merchandise Exports

Goods produced within a country and sold to customers in another country, contributing to the country's gross domestic product.