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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:
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.
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.

Correct Answer:

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LMC has generated tax carryforwards from...

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