The Notes to the 2014 Financial Statements of Halvoline Oil

question 55

Essay

The notes to the 2014 financial statements of Halvoline Oil Company provide the following disclosure regarding the deferred tax asset and liability accounts at December 31,2014 (amounts in millions of dollars):

Required:
1.What is the total amount of deferred liability at December 31,2014? What is the total amount of deferred tax asset? What is the net amount of the deferred tax asset or liability?
2.Assuming a federal tax rate of 35 percent,estimate the temporary difference arising from depreciation that exists for Halvoline at December 31,2014.
3.On December 31,2014,Halvoline shows a noncurrent liability on its balance sheet,captioned "deferred income taxes",in the amount of $634 million.What other deferred tax account,if any is included in the balance sheet? What is the amount of this other deferred tax account?

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