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Unformatted text preview: 2006 – found on page 15 3. For each of the items listed above, indicate its impact on income before income taxes, and net income. Visa/Mastercard settlement reduced SG&A expense in 2005, and therefore increased pre-tax income by $27 million. After-tax 27 x (1-.376) = 16.85 million increase in income. Tax of 10.15 million Change in amortization period for leasehold improvements reduced amortization in 2006 by $28 million, and increased pre-tax income by that amount. After tax 28 x (1-.38)=17.36 million increase in net income. Tax impact of 10.64 million. Decrease income by reversing; therefore decrease tax expense. See page 38, Income tax footnote for effective tax rate. Note impact on forecast on eVal. 1...
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This note was uploaded on 03/24/2008 for the course ACC 411 taught by Professor Hancock during the Spring '08 term at N.C. State.
- Spring '08
- Income Statement