1. Prepare the book journal entry for income tax expense for 2015 (combine U.S., foreign, and state income taxes). Clearly indicate both the account title and whether the account in being debited or credited.
2. Using information given in the tax reconciliation, estimate Alphabet's pre-tax book income for 2015.
3. What was Alphabet's 2015 effective tax rate?
4. Using information found in the tax note, determine whether depreciation and amortization expense was higher for book or tax purposes in 2015 and by how much.
5. Based on information in the tax note, are the tax rates in foreign countries in which Alphabet operates greater than or less than the U.S. tax rate?
6. Explain why federal research credits appear in the tax rate reconciliation.
Homework Answers
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1. Prepare the book journal entry for income tax expense for
2015 (combine U.S., foreign, and...
Interpreting the Income Tax Expense Footnote The income tax footnote to the financial statements ...
Interpreting the Income Tax Expense Footnote The income tax footnote to the financial statements of FedEx Corporation follows The C ts of the provision for income taxes for the years ended May 31 were as follows: $ millions 2016 2015 2014 Current provision (benefit) Domestic $513 $795 $624 State and local 72 102 56 200 214 194 785 1,111 874 Federal Foreign Deferred provisions (benefit) Domestic 55 (474) 360 State and local (18) (47) 82 (2) 13 18 135 (534)...
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income...
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income Required: Determine which book/tax differences are temp or perm Calculate and enter Federal income tax expense Prepare journal entry to record tax expense Calculate Effective Tax Rate Prepare Deferred Tax Reconcilation for Financial stmt footnote Tax 4,800 300 5 5 5,105 (700) (15) (700) Payments not received municipal bond interest 2,350 2,350 Assumptions: DTA and DTL beginning balances = 0 All DTAs and DTLs...
Analyzing and Interpreting Income Tax Footnote The following is an excerpt from Walmart's 2015 Form 10-K...
Analyzing and Interpreting Income Tax Footnote The following is an excerpt from Walmart's 2015 Form 10-K A summary of the provision for income taxes is as follows ($ millions): Current: U.S. federal $6,498 U.S. state and local 810 International 1,529 Total current tax provision 8,837 Deferred: U.S. federal (464) U.S. state and local (55) International (77) Total deferred tax expense (benefit) $(596) a. What amount of income tax expense does Walmart report in its income statement for 2015? million b....
Cremshaw Inc.’s auditors prepared the following detail reconciliation between book and taxable income. Cremshaw’s income tax...
Cremshaw Inc.’s auditors prepared the following detail reconciliation between book and taxable income. Cremshaw’s income tax rate is 21%. Book income before tax $650,000 Bad debt allowance $25,000 Meals ($30,000 * 50%) $15,000 Tax-exempt interest income $(20,000) Wages not paid in 2 ½ months $45,000 Taxable income $715,000 Compute the net increase in Cremshaw’s deferred tax assets or liabilities for the year and identify whether deferred tax assets or liabilities increased.
LO3 E10-36. Analyzing and Interpreting Income Tax Disclosures The income tax footnote to the financial statements...
LO3 E10-36. Analyzing and Interpreting Income Tax Disclosures The income tax footnote to the financial statements of FedEx Corporation follows. FedEx Corporation (FOX) The components of the provision for income taxes for the years ended May 31 were asfollows: MBC $ millions 2016 2015 2014 Current provision (benefit) Domestic Federal .... ..... $513 $ 795 $ 624 State and local ............. 72 102 56 Foreign.. .............. 200 214 194 785 1 874 Deferred provision (benefit) Domestic Federal *** 155 (474)...
What proportion of the foreign net operating losses does the company believe will likely expire unused?...
What proportion of the foreign net operating losses does the
company believe will likely expire unused? (Round your answer to
the nearest whole number
Analyzing and Interpreting Tax Footnote Under Armour, Inc. reports total tax expense on its income statement for year ended December 31, 2010 of $40,442 and cash paid for taxes of $38,773. The tax footnote in the company's 10-K filing, reports the following deferred tax information. Deferred tax assets and liabilities consisted of the following in thousands):...
Total liabilities and stockholders' equity ($332,500) ($410,500) The partial beginning of the year tax and book...
Total liabilities and stockholders' equity ($332,500) ($410,500) The partial beginning of the year tax and book balance sheet information is provided below. Complete the table and determine the Relix's deferred tax benefit or expense for the year. Assume a 21% Federal corporate tax rate and no valuation allowance. Net Book Value Tax Adjusted Basis Temporary Difference Combined Tax Rate Deferred Tax Asset/(Liability) Accumulated depreciation-Building $360,000 $417,000 57,000 21% $ 11,970 Accumulated depreciation -- Furniture & fixtures 31,000 35,200 4,200 21%...
Please check my answers. 1. Prepare Journal Entry to record income tax expense, deferred taxes, and...
Please check my answers.
1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable for 2018 2. Draft the income tax expense section of the Income Statement, beginning with Income before income taxes". . Write an analysis directed toward the team at Good Company describing what the numbers mean and how they relate to the business. Information: Good Company began operations in 2018 and has provided the following information: 1. Pretax financial income for 2018...
Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes...
Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year before recording any net deferred tax asset or net deferred tax liability. Tax Debit/(Credit) Book Debit/(Credit) Assets Cash $500 $500 Accounts receivable 8,000 8,000 Buildings 750,000 750,000 Accumulated depreciation (450,000) (380,000) Furniture and fixtures 70,000 70,000 Accumulated depreciation (46,000) (38,000) Total assets $332,500 $410,500 Liabilities Accrued litigation expense $0 ($50,000) Note payable (78,000) (78,000) Total liabilities ($78,000) ($128,000)...
Yount Inc.'s auditors prepared the following reconciliation between book and taxable income. Yount's tax rate is...
Yount Inc.'s auditors prepared the following reconciliation between book and taxable income. Yount's tax rate is 21 percent. Net income before tax Permanent book/tax differences Temporary book/tax differences Taxable income $ 378, 200 (33,500) 112,400 $ 457,100 a. Compute Yount's tax expense for financial statement purposes. b. Compute Yount's tax payable. C. Compute the net increase in Yount's deferred tax assets or deferred tax liabilities (identify which) for the year.
Interpreting the Income Tax Expense Footnote The income tax footnote to the financial statements of FedEx Corporation follows The C ts of the provision for income taxes for the years ended May 31 were as follows: $ millions 2016 2015 2014 Current provision (benefit) Domestic $513 $795 $624 State and local 72 102 56 200 214 194 785 1,111 874 Federal Foreign Deferred provisions (benefit) Domestic 55 (474) 360 State and local (18) (47) 82 (2) 13 18 135 (534)...
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income Required: Determine which book/tax differences are temp or perm Calculate and enter Federal income tax expense Prepare journal entry to record tax expense Calculate Effective Tax Rate Prepare Deferred Tax Reconcilation for Financial stmt footnote Tax 4,800 300 5 5 5,105 (700) (15) (700) Payments not received municipal bond interest 2,350 2,350 Assumptions: DTA and DTL beginning balances = 0 All DTAs and DTLs...
Analyzing and Interpreting Income Tax Footnote The following is an excerpt from Walmart's 2015 Form 10-K A summary of the provision for income taxes is as follows ($ millions): Current: U.S. federal $6,498 U.S. state and local 810 International 1,529 Total current tax provision 8,837 Deferred: U.S. federal (464) U.S. state and local (55) International (77) Total deferred tax expense (benefit) $(596) a. What amount of income tax expense does Walmart report in its income statement for 2015? million b....
LO3 E10-36. Analyzing and Interpreting Income Tax Disclosures The income tax footnote to the financial statements of FedEx Corporation follows. FedEx Corporation (FOX) The components of the provision for income taxes for the years ended May 31 were asfollows: MBC $ millions 2016 2015 2014 Current provision (benefit) Domestic Federal .... ..... $513 $ 795 $ 624 State and local ............. 72 102 56 Foreign.. .............. 200 214 194 785 1 874 Deferred provision (benefit) Domestic Federal *** 155 (474)...
What proportion of the foreign net operating losses does the
company believe will likely expire unused? (Round your answer to
the nearest whole number
Analyzing and Interpreting Tax Footnote Under Armour, Inc. reports total tax expense on its income statement for year ended December 31, 2010 of $40,442 and cash paid for taxes of $38,773. The tax footnote in the company's 10-K filing, reports the following deferred tax information. Deferred tax assets and liabilities consisted of the following in thousands):...
Total liabilities and stockholders' equity ($332,500) ($410,500) The partial beginning of the year tax and book balance sheet information is provided below. Complete the table and determine the Relix's deferred tax benefit or expense for the year. Assume a 21% Federal corporate tax rate and no valuation allowance. Net Book Value Tax Adjusted Basis Temporary Difference Combined Tax Rate Deferred Tax Asset/(Liability) Accumulated depreciation-Building $360,000 $417,000 57,000 21% $ 11,970 Accumulated depreciation -- Furniture & fixtures 31,000 35,200 4,200 21%...
Please check my answers.
1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable for 2018 2. Draft the income tax expense section of the Income Statement, beginning with Income before income taxes". . Write an analysis directed toward the team at Good Company describing what the numbers mean and how they relate to the business. Information: Good Company began operations in 2018 and has provided the following information: 1. Pretax financial income for 2018...
Yount Inc.'s auditors prepared the following reconciliation between book and taxable income. Yount's tax rate is 21 percent. Net income before tax Permanent book/tax differences Temporary book/tax differences Taxable income $ 378, 200 (33,500) 112,400 $ 457,100 a. Compute Yount's tax expense for financial statement purposes. b. Compute Yount's tax payable. C. Compute the net increase in Yount's deferred tax assets or deferred tax liabilities (identify which) for the year.
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