Deferred tax liability

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Need help with the attcahed questions with respect to the attached 10k.

1. HP reports income tax expense of $699 million in its 2004 income statement and describes its income tax expense in Note 12 (pp. 121-124).
a. The company reports that it increased its valuation allowance for deferred tax assets by $47 million. What effect, if any, did this increase have on 2004 net income?

b. HP reports a deferred tax asset labeled "employee and retirement benefits." Briefly explain what caused this deferred tax asset to arise.

c. HP reports a deferred tax liability of $2.347 billion relating to "unremitted earnings of foreign subsidiaries."
i. Briefly explain how this liability arose.

ii. What effect, if any, does the recording of a deferred tax liability on unremitted earnings have on current profitability?

2. HP reports its investment in debt and equity securities in Note 8 (p.112). The company reports an unrecognized gain on equity securities in public companies of $40 million in 2004. By what amount, if any, did this unrecognized gain affect 2004 profit and why?

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