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

question 126

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:

-Explain why LMC has a $209.4 million valuation allowance for its deferred tax assets.

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Definitions:

Tender Offer

A financial term referring to a public bid by a person or company proposing to buy shares from shareholders of a public company at a specified price within a certain time.

Full Market Value

The highest price a willing buyer would pay and a willing seller would accept for an asset in an open and competitive market.

Assumed Liabilities

Obligations that a company takes on when it purchases another company or its assets.

Acquiring Assets

The process of obtaining ownership or control of assets, which can include tangible property like real estate or intangible property like intellectual property rights.