13-Barnes&Noble-Taxes

13-Barnes&Noble-Taxes - Refer to the Barnes Noble...

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Refer to the Barnes & Noble 2002 financial statements presented on the subse- quent two pages to answer these questions. All questions relate to fiscal year 2002 (year ended February 1, 2003) unless stated otherwise. On its income statement, Barnes & Noble reports income before taxes of $199,313,000 for fiscal 2002. Required: 1. What is the amount of income tax expense shown on Barnes & Noble’s income statement for 2002? 2. Compute Barnes & Noble’s effective tax rate in percentage terms for fiscal 2002. 3. Compute the effect of “state income taxes, net of federal income tax benefit” on Barnes & Noble’s effective tax rate in percentage terms for fiscal 2002. 4. Explain how deferred tax assets and liabilities existing at the end of fiscal 2002 would affect Barnes & Noble’s financial statements in fiscal 2003 if tax rates increased to 38%. 5. Explain the purpose of the two schedules related to deferred tax assets and liabilities on the second page of the excerpt. Both schedules show net li- abilities of $80,205. Be clear on what each schedule is communicating. 6. Refer to the top schedule related to deferred tax assets and liabilities on the second page of the excerpt. Explain what “Goodwill amortization” of (11,241) implies about the relation between past GAAP and tax amortization
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13-Barnes&Noble-Taxes - Refer to the Barnes Noble...

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