Question
In: Accounting
RoofCo reports total book income before taxes of $20 million and a total tax expense of...
RoofCo reports total book income before taxes of $20 million and a total tax expense of $8 million. FloorCo reports book income before taxes of $30 million and a total tax expense of $12 million. The companies’ breakdown between current and deferred tax expense (benefit) is as follows.
Decision Making Communications
RoofCo FloorCo Current tax expense $10.0 $13.0
Deferred tax benefit (2.0) (1.0)
Total tax expense $8.0 $12.0
RoofCo’s deferred tax benefit is from a deferred tax asset created because of differences in book and tax depreciation methods for equipment. FloorCo’s deferred tax benefit is created by the expected future use of an NOL. Compare and contrast these two companies’ effective tax rates. How are they similar? How are they different?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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1. A company reports the following:
Income before income tax expense
$6,000,000
Interest expense
300,000
Determine the times interest earned ratio.
2. A company reports the following:
Sales
$6,480,000
Average total assets
2,400,000
Determine the asset turnover ratio. Round your answer to
one decimal place.
3. A company reports the following income statement and balance
sheet information for the current year:
Net income
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Interest expense
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Determine the return on total assets. Round percentage
to...
1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine...
1. A company reports the following:
Income before income tax expense
$6,000,000
Interest expense
300,000
Determine the times interest earned ratio.
2. A company reports the following:
Sales
$6,480,000
Average total assets
2,400,000
Determine the asset turnover ratio. Round your answer to
one decimal place.
3. A company reports the following income statement and balance
sheet information for the current year:
Net income
$110,000
Interest expense
77,000
Average total assets
1,700,000
Determine the return on total assets. Round percentage
to...
Analyzing and Interpreting Tax Footnote Under Armour, Inc. reports total tax expense on its income statement...
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
$38,773.
The tax footnote in the company's 10-K filing, reports the
following deferred tax information.
Deferred tax assets and liabilities consisted of the following (in
thousands):
December 31 ($ thousands)
2010
2009
Deferred tax assets
State tax credits, net of federal tax impact
$ 1,750
$ --
Tax basis inventory...
Assume that Income Tax Expense was $250,000, and that Income Taxes payable decreased by $14,000 and...
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increased by $29,000. What amount of cash was paid for Income
Taxes?
Fischer, Inc. reports total tax expense on its income statement for year ended December 31, 2010...
Fischer, Inc. reports
total tax expense on its income statement for year ended December
31, 2010 of $80,884 and cash paid for taxes of $77,546.
The tax footnote in the company's 10-K filing, reports the
following deferred tax information.
Deferred tax assets and liabilities consisted of the following (in
thousands):
December 31 ($ thousands)
2010
2009
Deferred tax assets
State tax credits, net of federal tax impact
$ 3,500
$ --
Tax basis inventory adjustment
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Recording Income Tax Expense The Boeing Company reports the following tax information in Note 4 to...
Recording Income Tax Expense
The Boeing Company reports the following tax information in Note 4
to its 2014 financial report.
Year ended December 31
2014
2013
2012
Current tax expense
U.S. federal
$775
$-84
$756
Non-U.S.
93
78
63
U.S. state
71
13
21
939
7
831
Deferred tax expense
U.S. federal
927
1,630
1,308
Non-U.S
36
43
(15)
U.S state
(7)
71
85
956
1,744
1,378
Total income tax expense
$1,895
$1,751
$2,209
a. Record Boeing's provision for income...
Recording Income Tax Expense The Boeing Company reports the following tax information in Note 4 to...
Recording Income Tax Expense
The Boeing Company reports the following tax information in Note 4
to its 2014 financial report.
Year ended December 31
2014
2013
2012
Current tax expense
U.S. federal
$775
$-84
$756
Non-U.S.
93
78
63
U.S. state
71
13
21
939
7
831
Deferred tax expense
U.S. federal
927
1,630
1,308
Non-U.S
36
43
(15)
U.S state
(7)
71
85
956
1,744
1,378
Total income tax expense
$1,895
$1,751
$2,209
a. Record Boeing's provision for income...
Use the following information to calculate cash paid for income taxes: Income Tax Expense $ 65,000...
Use the following information to calculate cash paid for income
taxes:
Income Tax Expense
$
65,000
Income Tax Payable, January 1
24,000
Income Tax Payable, December 31
14,500
Multiple Choice
$65,000.
$89,000.
$79,500.
$55,500.
$74,500.
A manufacturer reports the following costs to produce 24,000
units in its first year of operations: Direct materials, $24 per
unit, Direct labor, $20 per unit, Variable overhead, $216,000, and
Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were
sold, and 800 remain in...
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$6,000. Ramesh had a before tax income of $35,000 and paid taxes of
$5,250. Based on this information, the tax system is .....
a.regressive for all income levels below $40,000
b. proportional
c. progressive
d. based on the benefits-received principle
e. regressive for income levels between $35,000 and $40,000
Tax Drill - Deferred Tax Asset Ion Corporation has income tax expense/payable for book purposes of...
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expense/payable for book purposes of $200,000 and $250,000 for tax
purposes. Assume that Ion will only be able to use $30,000 of any
deferred tax asset with the balance expiring.
As a result, Ion will record a deferred tax asset of $
50 (incorrect)
and a valuation allowance of $ 20 (incorrect)
.
???
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